CR83-p60-Business 4:SJC-Casino Review 23/8/09 02:35 Page 1
internationalcasinoreview
AC casinos still sliding
The 11 casinos in Atlantic City generated gross gaming
Business
revenues of $383m (E270m) in July - 12.7 per cent less
than a year previously, according to figures from the
New Jersey Casino Control Commission. Slot revenues
were down 12.4 per cent to $266.8m (E188.6m) while
the win at the tables was down 13.4 per cent to
NEWS $116.2m (E82.2m). Year-to-date figures show a 14.9
per cent decline compared to 2008.
Grosvenor Casinos
Ian Burke, CEO of
Rank: “A clear
strategy for growth”
leading a positive
start for Rank
With growth despite the recession and continuing worry over its Mecca Bingo
business, a lean and confident Rank Group plans to capitalise on the evident
success of it G Casino brand.
ggrowinggrosvenor star in the company’s portfo- (E21.4m) in the six months stronger senior management
RANK GROUP lio, growing its revenues by to £208.1m (E242.5m) as a team and the group’s finan-
4.4 per cent in the period - in result of a positive operating cial position. While we
The second largest casino which the UK was in the cash flow. The company is remain cautious in the near
operator in Britain, the Rank deepest part of its ongoing also receiving regular pay- term, we look forward with
Group, has reported an recession - bringing in ments from the UK govern- confidence to the long-term
adjusted first half pre-tax £106.7m (E124.3m). Operat- ment following a favourable prospects for gaming and the
operating profit of £24.7m ing profit from the 34 venues High Court decision about success of the group’s
(E28.8m), an increase of currently open increased by VAT levied on interval bingo growth strategy.”
more than 40 per cent on the 17.6 per cent to £14.7m. The games. The company’s strategy
same period last year. higher numbers were the Ian Burke, Rank’s chief for growth remains centred
Revenues from all the result of a healthy rise in executive, said: “We have set on the development of the G
group’s activities, including visitor numbers across the out a clear strategy for Casino brand, which it plans
Mecca Bingo, Top Rank estate and despite a lower growth within the UK to increase from the current
España bingo and Rank Inter- than average win margin in gaming market, expanding seven venues to ten by the
active, totalled £266m the London locations. The our portfolio of G Casinos, end of the 2009 and to more be relaunched as the eighth it to use the remaining
(E310m), up 3.5 per cent on company has been reaping delivering operational than 20 by the end of 2012. G Casino later this year. licences in places where lack
H1 2008. the rewards of rejuvenating improvements in Mecca Capital expenditure in Grosvenor holds a further of demand of space militates
The bingo businesses did parts of its estate through Bingo and repositioning Grosvenor Casinos reached 12 casino licences under the against the larger style
well in what continues to be the successful G Casino Rank Interactive to prioritise £3.9m (E4.5m) in the first 1968 Act, which are currently venue. Several other existing
the most challenging operat- brand. its gaming websites and mec- half of the year with the full not being used. It is planning casinos will also be relocated
ing environment probably in In recent years Rank strug-
cabingo.com in particular.” year total expected to be to use seven to develop G or refurbished under the G
the history of the game, gled as it refocused itself as a He added: “Despite the upwards of £16m (E18.6m). Casinos, including one in Casino brand, such as the
keeping pace with the rev- purely gaming business. The economic uncertainty, we Some of that money was Dundee in Scotland, due to soon-to-be opened Sheffield
enues from last year as company still has a relatively are encouraged by the spent on the bargain base- open before the end of 2009. casino or G Casino Bolton,
adjusted. high level of debt, however, progress we have made this ment acquisition of the Isle The company is also devel- which opened in April.
However, the Grosvenor it has managed to reduce the year in terms of enhanced Casino at the Ricoh Arena in oping a number of smaller
Casinos division was the real net amount by £18.4m customer propositions, a Coventry for £650,000. It will format casinos that will allow
Wynn gets
American
satisfaction
Chance pays off
where czechup $14.7m (E10.4m).
he can
TRANS WORLD CORPORATION In a statement, the
company said: “Although
The US owner of the attendance [during Q2] was
weak and the administra- American Chance chain of up 12.6 per cent on live
tion is more of a problem casinos and a hotel in the games and 21.4 per cent
than a help…For now, we’re Czech Republic, Trans on slot games, the slight
more afraid of Washington World Corporation, has revenue reduction was the
than we are of the economy.” reported a modest increase result of a higher
Never shy about dipping in net profits of 3.5 per cent proportion of wins by
his toes into political waters, for the second quarter, players in one of the larger
he said the company had clearing $834,000 casinos and to an overall
“fears of runaway inflation” (E589,700). For the first lower drop per head,
if the Federal deficit contin- half, profits were up by 6.5 influenced by a younger
ues to rise. “The good news per cent to almost $1.5m clientele. The contributions
is that the Senate seems to (E1.1m). of…revenues from the
slowingslide three months to the end of was down a similar amount be slowing it down.” The growth in profits company’s newest
WYNN RESORTS June this year, whereas Wynn to $12.6bn (E8.9m), with a If Encore Las Vegas has comes despite an almost operation, Hotel Savannah,
Las Vegas alone brought in win of 2.7 per cent, at the yet to contribute meaning- flat quarter in terms of total offset the revenue drop.”
With the opening of Encore $120.7m (E85.2m) last year, lower end of the expected fully to the company’s revenues at $8.8m (E6.2m):
in Las Vegas in December, indicates how much busi- range. Turnover at the mass bottom line, Steve Wynn in the half they even drifted
comparisons between ness is suffering in the world market tables was down believes that it, and its 8.5 per cent by comparison
Wynn Resorts second quar- of casino capital. 23.3 per cent to $626.9m under-construction name- to the first six months of
ters last year and this are Wynn Macau also saw a (E442.5m). sake in Macau, will position 2008, reaching $16.6m
fairly meaningless. Never- large decline in gaming rev- Chairman Steve Wynn the company well in time (E11.7m).
theless, the fact that the two enues in the quarter, down said he was “as satisfied as for the recovery when it Trans World also
Strip venues generated more than 22 per cent to you can be at a time when comes. “Things seems to managed to push its costs
gaming revenues of $410.4m (E289.7m). the world is still uncertain, stabilising in Las Vegas and down by more than ten per
$124.3m (E87.7m) in the Turnover in the VIP segment consumer confidence is China,” he said. cent in the first half to
60 September 2009 • businessnews
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