Rank Group said on Friday it had seen growth in its online gaming sites and customers returning to its casinos in the final three months of 2009 and added that last year’s tax changes would not have the impact initially feared.

Revenue, on a like-for-like basis, for the 52 weeks to December 27 rose 1 per cent. However turnover in the final 12 weeks of the year rose 2 per cent on improved performances at Grosvenor Casinos, its chain of 37 casinos, and Rank interactive, which includes the online betting site Blue Square as well as bingo and casino sites.

The group said adjusted earnings per share for 2009 would be “significantly higher” than the 7.3p it recorded in 2008 and would be at the upper end of analysts’ estimates of between 6.8p to 8.1p per share. Shares in the group opened up 3.4 per cent at 92.6p.

Last April’s budget saw chancellor Alastair Darling raise the duty on bingo and card room games from 15 per cent to 22 per cent. Rank, the country’s second-largest bingo operator, warned at the time that changes to the tax regime would hit results for the 2008-09 financial year by an estimated £9m.

However, Rank said on Friday the tax change would result in it incurring just £5m of unbudgeted taxation costs during 2009.

Since then the government has announced plans to partly reverse the increase in bingo duty and cut the rate from 22 per cent to 20 per cent, which Rank estimated it would benefit it to the tune of £2.5m in the current financial year.

With leisure companies struggling to attract custom in the recession, Rank introduced a range of measures to increase footfall at both Mecca bingo and Grosvenor Casinos. They included extended trading hours, a customer loyalty scheme and the expansion of G Casinos, large venues that offer traditional table gaming as well as sports lounges, restaurants and bars.

Like-for-like sales for the year at Grosvenor rose 3 per cent and customer visits in the period rose 5 per cent.

Like-for-like revenues for the year at Mecca Bingo were flat as customer visits for the year fell 4 per cent. However, reported revenues rose 2 per cent and spend per visit rose 4 per cent.

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Date Posted: 09-Jan-2010