Rank sees revival as more flock to Mecca

Rank, which has worked to broaden the appeal of bingo through moves such as Full House clubs aimed at younger players, said customer visits rose 0.4 per cent to 7.52 million in the first half of 2010.

Revenues at Mecca, which has 103 bingo clubs, also rose two per cent to 118.7m although Governmentincreases in bingo tax sent profits 16 per cent lower to 16m.

Shares rose as chief executive Ian Burke added that its Grosvenor

Casinos arm had drawn in more than one million customers for the first time. The shares closed the day at 117p, a rise of 7.75p.

The group has stepped up spending to support growth plans with 50m in capital investment earmarked this year.

Mr Burke said: "In spite of a challenging environment for consumer-facing businesses, the group has made sustained progress."

The signs of revival at Mecca come after a number of headwinds faced by the business in recent years – with smoking bans, changes to legislation which restricted money-spinning gaming machines, a harsh tax regime and a squeeze on consumers in the recession.

Investec analyst Andrew Fitchie said the performance showed "not just underlying stability, but potentially the first signs of a return on product investment".

The group also managed to grow revenues at its Spanish arm against the backdrop of severe economic difficulties.

Its interactive business grew revenues 10 per cent, as bingo revenues were helped by meccabingo.com's marketing tie-up with reality show Britain's Got Talent.

Rank added that it had continued the momentum in the first four weeks of the second half, with like-for-like revenues growing across all of the company's businesses.

The firm's balance sheet is also looking healthier after net debt was slashed by more than 50m to 133.4m over the first half.

Mr Fitchie added: "In the medium-term, we see Rank's strategy of increasing volumes across each of its divisions as increasingly well executed, which should drive revenue growth on a tightly-controlled cost base."