Trading for Rank Group in the 50-week period to 14 December 2008 saw like-for-like revenue decline by 7%, with total revenue down by 5%. Rank Group has been committed to reducing operating costs in an effort to offset these figures.
Rank Group, who own Mecca Bingo, have seen admissions to their Mecca Bingo halls shrink due to rising unemployment and weakening consumer confidence it has been reported.
The decline in admissions to Mecca Bingo has been slightly offset by an increase in spend-per-head, although it was put into question whether this was sustainable. While Mecca saw a decrease of 5% in admissions, they have seen a 5% increase in spend-per-head.
Some initiatives to increase revenue within Mecca Bingo halls include looking to increase the amount of gaming machines and create ‘adult gaming centres’ within Mecca Bingo properties.
Rank who also operate in Spain under ‘Top Rank España’ have been hit hard by difficult trading conditions in a Country whose unemployment rate is rising rapidly. This factor along with a weakening consumer confidence has seen underlying revenues for Top Rank Españas revenue decline by 9% for the 15weeks to 14 December 2008. However, due to the continuing strength of the Euro against the pound this has actually given the division a growth of 4%.
On a slightly more positive note for the group, on 10 November 2008 the group received £59.1m in overpaid VAT following the VAT & Duties Tribunals ruling in May which argued that the VAT to games of interval bingo contravened European Union law.
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