SOURCE: Reuters

(London, England) — Bingo, casino and online gaming firm Rank (RNK.L: Quote, Profile , Research) said on Thursday first-half revenue rose as a wet summer lured customers indoors, helping ease the recent introduction of a smoking ban in England at its bingo clubs.

Rank, which runs Mecca bingo clubs, Grosvenor casinos and online gambling site Blue Square, said first-half group revenue was 284.6 million pounds ($571 million), up 2.3 percent from 277.3 million in the same period last year.

Underlying group operating profit rose 26 percent to 47.9 million pounds, helped largely by cost savings and growth in its small but fast growing online gambling Web site Blue Square.

Rank shares rose 7.6 percent to 166 pence at 0804 GMT.

Finance Director Peter Gill told reporters that the firm was comfortable with analysts' full-year forecasts following the solid start.

In the eight weeks since the end of the first half Rank said despite the smoking ban group like-for-like revenues were "marginally lower" than in the same period a year ago.

The firm said its Mecca bingo clubs in England had seen a 4.4 percent drop in like-for-like revenue since the ban was introduced on July 1, while Scottish like-for-like revenue was up 3.9 percent since the end of March although that is 13 percent off figures before the ban was brought in March 2006.

Smoking bans hit bingo halls in a number of ways -- many bingo players are older women and some stopped going because they do not want to stand outside to smoke.

Those who still go step out to smoke in breaks between games instead of playing highly profitable gaming machines, which can earn bingo clubs up to 75 percent of their profits.

The firm kept its interim dividend at 2 pence and said it remained cautious for the rest of the year, which alongside the smoking ban will also see an overhaul of British gambling laws come into force.

"The second half of the year will prove more challenging," Rank said.

"This is due mainly to the effects of the smoking bans which are now in place across the UK and the requirement for our bingo clubs and casinos to remove or convert Section 21 terminals," it added.