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04 August 2009
Half year results have been released from The Rank Group Plc (RNK), the company behind the popular Mecca Bingo site. The results show that despite the recent tax hike on bingo and the smoking ban enforcement on land based bingo clubs there have been a “significant earnings progression despite a challenging operating environment”. The figures show that company’s profits before tax in 2008 were £17.6m and they have increased to £24.7m in 2009 and the profitability has risen by 40%. RNK’s debt was also significantly reduced during the first half of 2009 by £18.4m to £208.1m. Shares in RNK have increased by 1.02% following the results.
Eight competitor bingo clubs have closed and no new bingo clubs have opened. There have also been a further nine closures announced since the start of the second half of the year.
Despite this Mecca Bingo opened a new concept club in Beeston in Nottingham. The club is based on what existing and non-customers have asked for including good quality and good value food and drink, more innovative games plus traditional bingo and a garden lounge with open-air space for smokers.
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