First formed in 1995 to consolidate the business assets of the Rank organisation the Rank Group PLC has since become one of Europe’s leading gaming companies; and is currently listed on the London Stock exchange. In 2005 Rank sold off Deluxe Film for £400million. In 2006 they offloaded their Hard Rock franchise and then, ten years ago sold off the Odeon Cinema chain plus their business interests in the world famous Pinewood Studios. The company also sold Butlins, Haven Holidays and Warner to Bourne Leisure in the meantime. So, a lot of selling has been going on with the Ranks for a while now!
On May 5th Rank 1999 rank launched Blue Square – an interactive gaming business which has progressed from a good ole fashioned bookmakers to now include online casinos, poker and slots. They also own Grosvenor Casinos which are located throughout the UK. Yet, apart from all that rank have become best know to the UK public as the company behind the Mecca Bingo brand. Last year, despite the sell offs and all their assets and a pre-tax profit of £52Million last year the company made a loss of 26.1Million: Due to that revenue being subject to a pension charge.
Last year Rank Group’s revenue actually went up by 3.4% but with the pension charge, the smoking ban and a 22% tax rate they still suffered losses: When you look at the figures that is incredible to believe, but the facts state that this is the case. In November 2009 they (along with some help from UK bingo fans) managed to persuade the Chancellor of the Exchecher to lower the rate – which he did by 2% – but every little counts when you are talking such HUGE numbers!
Despite all that, up to now 2010 is looking good for Mecca with an increase in sales at their bingo halls – despite the fact the UK has been plagued by snow. Between their Casinos and bingo clubs Rank are starting to look very solid indeed. Rank’s Chief Exec Ian Burke commented recently: “The UK is out of recession and our own trading performance has improved. Restoring the dividend is a statement of confidence about our financial performance”.
There are those who say the online bingo market is slowing down – but to that happened to date – at least not with regards to the leading brands. And it does seem that the confidence is there from investors as dividends in these top operators continues to rise. So, looks like all you bingo maniacs out there have a long and fruitful online bingo life ahead. Phew!
