Shares in casino and bingo hall operator Rank fell 1.6% on Thursday despite high-stakes gamblers helping the business post a “solid performance”.
Investors shied away in early trading after the Mecca and G Casino owner revealed a marginal dip in pre-tax profits to £65.1 million in the year to June 30, despite a 7% increase in overall revenues.
The company saw the overall number of visitors to its UK network of venues drop slightly to 26.93 million over the period.
However, the amount spent per customer per visit increased by 5% during the year from an average of £21.57 last year to £22.63.
The casino business saw sales climb 15% to £300.3m from £261.5m, while the Mecca outlets also posted a £2.6m increase in revenues to £296.2m.
The firm said an increase in high-roller gambling at its London venues helped boost its gaming return, as well as a 72% uplift in revenues derived from digital gaming sources to £9.8m.
In May, Rank moved to seal a £179m deal to purchase 19 casino properties from rivals Gala. The long-standing Dundee Gala was not part of the deal as the venue is being torn down as part of the waterfront redevelopment project.
A 10% like-for-like increase in online bingo revenues helped Mecca maintain positive sales momentum overall, despite a 3% drop in returns from its traditional bingo halls.
The company said it was calling a halt to its ‘Full House’ makeovers for Mecca venues, a programme launched four years ago in a bid to tempt a younger generation players to bingo, after the revamps failed to provide the anticipated returns.
Rank chief executive Ian Burke said the group’s full-year figures were “solid” despite the tough economic environment, but warned that the prolonged summer sunshine had hit trading in recent weeks.
“It has been a busy 12 months for Rank, culminating in the successful completion in May of the acquisition of 19 casinos and three non-trading licences from Gala Coral, making Rank the leading operator of casinos in Great Britain,” Mr Burke said.
“These additional casinos are already being integrated into the Rank estate, and a programme of improvements has commenced. The recent hot weather has adversely impacted trading in the first weeks of the new financial year.
“However, we remain confident in the group’s long-term prospects and see good growth opportunities for our expanded casino estate and digital channels.”
During the year, Rank sold off its loss-making Blue Square Bet business to Betfair for £5m.