PUB operator Greene King has reported a better-than-expected full-year profit and said revenue from its retail business crossed £1 billion for the first time.

Greene King, which operates 1,909 pubs as well as breweries, reported a pre-tax profit of £168.5 million for the 52 weeks ended May 3.

That compares with analysts' average estimate of £166.76m.

Revenue at Greene King's retail business, which accounts for nearly three-quarters of the total, rose 5.9 per cent with average revenue per site up 2.4 per cent. Group revenue rose three per cent to £1.31bn.

Greene King is focusing on its retail business as it competes for a bigger slice of the burgeoning dining market. It operates 1,000 managed pubs, restaurants and hotels across the UK.

The group completed a £774-million-pound takeover of smaller rival Spirit Pub last month to create one of the biggest pub groups in Britain, overtaking All Bar One owner Mitchells & Butlers.

The company declared a final dividend of 21.8 pence per share from 20.8 pence last year.