Rank Group makes 29% profit in the first half-year
Online bingo kingpins, the Rank Group, have reported seeing a rise in profit of 29% over the first half-year. The group said that their pre-tax profit has rose to a total of £35.8 million ending on December 31, which is up from the £27.7 million they took in at the same time one year earlier.
Online Casino And Bingo Behind The Profits
The Rank Group are citing their Grosvenor casino business and online bingo operations as the main reasons for their sudden good fortune. In total, all operational revenue was thought to rise just 3%, up to a total of £361.7 million, with a customer spending rate of £47.19 pounds on average. This is an increase of 2.2%.
According to their data from the company’s annual report (2014); Rank’s Grosvenor Casinos bring in almost 52% of all the revenue that the group take. Most recently, they signed a deal with Bede Gaming following a 16% jump in digital revenue alone.
The Rank Group are owned by the Guoco Group, based out of Malaysia. Before they sold off some of their property, the Rank Group were reported to have a total of 94 Mecca Bingo halls and 57 Grosvenor casinos in operation in the United Kingdom last year.
At the time of writing, shares in the bingo giant’s stock had risen 3.1p up to a total of 169p.
Reduction In UK Bingo Duty Pays Off
Also accredited to their rise in fortune has been the reduction of UK bingo duty by the British Government. This has allowed Mecca Bingo halls and clubs greater margin for profit. They have also been able to offer better prizes, to lure more punters into the bingo halls. Another reason for the increase in profit could be the assets that the Rank Group purchased from Gala Coral.
The Rank Group will continue their expansion by appointing new heads to both their Grosvenor and Mecca Bingo arms, as well as opening new casinos in Southend and redesigning its Bournemouth site.