The Rank Group saw group revenues rise in the opening half of the year in the first set of results since a deal to sell up to Guoco was agreed. Group revenues rose by 4.6% to £294m for the six months to June and they continued to receive a favorable forecast from certain analysts. Whilst reiterating his firm’s buy recommendation, James Hollins, of Evolution Securities, told eGR, “We expect further income hikes and/or group investments to drive positive total shareholder returns upside.”
As per usual Rank Interactive was the company’s star performer with revenues rising by 24.1% to £34m thanks in no small part to strong performance from the Mecca Bingo brand. Operating profit was also up by 17.4% to £2.7m as the results again showed how much traditional land-based companies are now turning to online gambling industry.
The ex-boyfriend that came crawling back, aka chairman of Rank, Ian Burke, commented, “During the first half of 2011 we have maintained the progress of recent years as rising customer numbers drive profit and revenue. We have a portfolio of some of the strongest brands in UK gaming and the ability to reach our customers through our estate of well- invested venues, our high quality websites and increasingly via mobile channels.
“The strength of our first-half results reflects the success of our efforts to entertain and delight our customers, with both customer visits and customer numbers up across the Group.”
There has already been confirmation that the company won’t be delisting from the stock exchange and now all they need do is wait for the takeover to be completed by Guoco. It’s hardly likely to go off without a hitch though.