Rank Group PLC
03 May 2007
3 May 2007
Rank Group Plc
AGM trading statement for 16 weeks to 22 April 2007
Summary
The Rank Group has made a solid start to its first year as a focused gaming
business with like-for-like revenue up 3% for the first 16 weeks. This reflects
like-for-like revenue growth at Grosvenor Casinos, Top Rank Espana and Blue
Square and a modest decline at Mecca Bingo, against the comparable period in
2006. This revenue performance, together with the cost-saving initiatives
announced in September last year, has led to an increase in group profits in the
year to date.
Revenue Like-for-like Total
(adjusted for
club openings,
disposals &
closures)
Mecca Bingo (1)% (4)%
Top Rank Espana 2% 2%
Grosvenor Casinos 3% (1)%
Blue Square 40% 40%
Total Group 3% 0%
Mecca Bingo
Mecca Bingo like-for-like revenue was 1% lower than in the same period in 2006,
with spend per head increasing by 6% and admissions declining by 7%.
In England and Wales, Mecca Bingo's like-for-like clubs generated 1% growth in
revenue with increases in spend per head off-setting lower admissions. This
pattern was due in part to our decisions both to reduce free bingo and to not
replicate a number of frequency-based promotions (operated in the comparable
period in 2006), which resulted in a decline in low-spend admissions.
On 26 March 2007 we passed the anniversary of the Scottish ban on smoking in
enclosed public places. For the first 12 months of the smoking ban, revenue from
our Mecca Bingo clubs in Scotland declined by 17% on a like-for-like basis, with
admissions down 10% and spend per head down 7%. During the winter months spend
per head recovered to near pre-ban levels but admissions were affected
adversely.
In April 2007, we opened at Mecca Bingo in Dundee our first sheltered outdoor
gaming area. We are seeking to extend this type of amenity across a large number
of our Mecca Bingo clubs.
Top Rank Espana
A slight increase in revenue from Top Rank Espana, our Spanish bingo business,
demonstrated progress in overcoming the effects of the partial smoking ban that
was phased in during 2006.
Grosvenor Casinos
Grosvenor Casinos grew revenue by 3% on a like-for-like basis, with admissions
down by 6% and spend per head increasing by 10%. These figures in part reflect
our decision to end the frequency-based promotions that were a feature in the
first-quarter of 2006. We remain pleased with the growth in new members and the
underlying admissions performance.
In March 2007, Grosvenor was granted a licence to operate a casino in
Southend-on-Sea, Essex. We have now been granted nine new casino licences in
total.
Blue Square
Blue Square, our interactive gaming and betting business, continued its
excellent recent progress, growing revenue by 40% in the period. This
performance was driven primarily by online gaming products, with meccabingo.com
performing particularly well. Sportsbook also enjoyed a buoyant start to the
year.
Ends
Photographs of the Rank Group are available from www.newscast.co.uk and from
www.rank.com
Contact
Rank Group Plc
Dan Waugh, director of investor relations +44(0) 1628 504053
M: Communications
Nick Fox/Lisa Gordon +44(0) 207 153 1540
This information is provided by RNS
The company news service from the London Stock Exchange
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