In the UK, gambling giant Rank Group has released its financial results for last year showing a 3.4 percent year-on-year rise in total revenues before adjustments to £540 million while its statutory revenues increased three percent to £520.5 million.
However, higher gambling taxes saw the firm’s operating profit before exceptional items drop 3.8 percent year-on-year to £58 million while Rank's online gaming division was its only segment not to achieve growth during the year due to an increase in marketing costs.
The firm behind MeccaBingo.com and GCasino.com revealed a total operating profit after exceptional items of £60.8 million compared to a loss of £9.1 million in 2008 and its adjusted profit before tax rose 19.8 percent year-on-year to £48.5 million. In addition, its adjusted earnings per share increased 21.9 percent to 8.9 pence with the firm eliminating £40 million of debt to bring its current net debt to £187 million.
“Our financial performance in 2009 was principally a result of the actions we have taken over a number of years to reposition the group,” said Ian Burke, Chief Executive Officer for Rank.
“During a period of considerable economic uncertainty, Rank has achieved revenue growth by improving the quality of product and service offered to customers and, at the same time, has maintained effective control of operating costs. We are stepping up investment to support our expansion strategy having strengthened our financial position through a substantial reduction in net debt.
“While consumer conditions remain challenging, we have stabilised our businesses and we remain confident in our long-term growth strategy. Consequently, the board has determined to recommend the reinstatement of dividend payments from May of 2010.”
