Mecca Bingo and Grosvenor Casino owner Rank Group PLC (LSE:RNK) said it has started its new financial year strongly and is confident of hitting full-year targets.
Like-for-like net gaming revenue of £210.2 million was generated in the three months to 30 September, up 9% on the year before.
The performance remains driven by Grosvenor casinos, where revenue rose 8%, and Digital, where underlying revenue growth hit 13%.
Grosvenor grew 10% outside London, compared to 4% in the capital, which was supported by a "significant step up" at the newly refurbished Victoria Casino on Edgware Road.
Gaming machine revenues grew 12%, with the rollout of 471 additional machines across the estate since late August, with a target of 850 machines
Mecca venues saw like-for-like NGR growth of 5%, with customer visits down 1% but spend per visit up 6%.
In Spain, NGR was down 1% due to platform capacity issues, which the company said are being addressed with the launch of a new bingo platform that is expected to return this arm to growth in the second quarter.
Chief executive John O'Reilly said: "We have started the year strongly and are confident of delivering group like-for-like operating profit in line with expectations, notwithstanding the significant cost increases we have incurred in employer national insurance contributions, the national living wage and the new statutory levy."
He said speculation about tax changes in the upcoming Budget is "hanging over the business" but talks with HM Treasury have been held to emphasise the implications how this might affect employment levels and future investment.
"Last year the group generated £44.6 million in profit after tax, having paid HMRC and local authorities £188 million in taxes. The Rank Group, with its strong UK focus, is certainly paying its fair share."