Rank Reports Profits Down Due to Investments in Marketing

Published Saturday, July 31, 2010 - Online-Casinos.com

Despite a 10 percent rise in revenues in the first half of 2010, the UK land and gambling group Rank plc also reported this week a 23 percent decline in operating profit to GBP 2.3 million. (Great British Pound) The explanation from management regarding the decline was an increase in spending in marketing investment and product development. They also attributed the decrease in profits due to Italian and Spanish market start-up costs of GBP 300 000.As a result of cross-selling the online offering to customers of Rank’s land-based G Casino and Grosvenor Casinos, casino revenues rose 25 percent to GBP 3 million.

Of interest are the performers in the half year to end June, the relaunched G Casino brand that consistently show growth. and Mecca Bingo. Now, Grosvenor Casino gives online casino players the chance to experience the stylish and classy environment that has made the offline Grosvenor Casino chain in the UK so successful. They are licensed in Aldernay and powered by Playtech and give a new player a bonus of 150 UK.

Mecca Bingo recorded revenues of up to 20.7 percent to GBP 19.8 million. It is no surprise that this was due to the bigger marketing investments which included a deal with Britain's Got Talent, a GBP 700 000 television advertising campaign and improved cross-selling to customers from Mecca Bingo clubs.

Of note is Blue Square sportsbook whose revenues declined 18 percent to GBP 3.6 million despite the football World Cup during the latter half of June. This could be reflected in the diversion of market spending to Mecca Bingo and G Casino.com.

Also of note are Poker operations which again produced a lacklustre performance. Revenues were down a whopping 41 percent to GBP 1 million. This again could be attributed to marketing diversions although sector-wide declines in the genre were also a factor.

 

 

 

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