Growth rate picks up at Rank

Like-for-like (LFL) revenue growth has picked up in recent weeks at bingo, casino and online gaming company Rank Group.

The group announced a 5% LFL revenue growth rate for the 18 weeks to May 6th, with total revenue up 4%, boosted by Grosvenor Casinos and Rank Interactive.

That represents an acceleration in LFL growth for Rank; for the 45 week period LFL revenue was up by 3% and total revenue was up 4%.

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Chairman Ian Burke said: "I am pleased that the group continues to achieve solid revenue growth despite a challenging trading environment. In the period, the group's UK businesses have continued to invest in programmes that will broaden the appeal of our brands."

Grosvenor Casinos saw total revenues rise by 8% in the 18 week period with a rise in spend per visit, up 6% and customer visits up 2%. LFL revenue rose 6% with spend per visit up 7% and customer visits in line with last year. LFL customer visit numbers were up in Grosvenor's UK casinos, but this was offset by a reduction in customer visits to its Belgian casinos, which continue to be affected by last summer's extension to the smoking ban.

Mecca Bingo's LFL revenue during the 18 week period was in line with last year as increasing spend per visit was offset by a reduction in customer visits. The investment in Mecca's food and beverage offering meant that this delivered Mecca's higher revenue growth. For the 45 weeks, LFL revenue grew 2% and total revenue was in line with the equivalent period last year.

Rank Interactive achieved a 17% increase in revenue during the 18 week period with another good performance from meccabingo.com, up 19%. Grosvenorcasinos.com also enjoyed strong growth, up 48%, albeit from a low base. While the Blue Square branded sports-book attracted more customers than last year, these customers have staked less with the result that revenue is down 7% on the same 18 week period last year.

"The board is encouraged that its UK businesses have continued to make progress and expects the group's full year performance will be in line with our expectations," the firm added.

"While the economic outlook in the UK and Spain seems likely to remain challenging, Rank is in a strong financial position, possesses market-leading brands with multi-channel distribution and has a clear strategy for sustained long-term growth."

The share price rose 3.71% to 117.40p by 09:29.

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