Rank Group PLC
13 November 2002
THE RANK GROUP PLC
TRADING STATEMENT FOR THE FOUR MONTHS TO 2 NOVEMBER 2002
Trading remains similar in trend and pattern to that previously reported and
results are in line with our expectations.
Gaming continues to enjoy strong results. In Mecca Bingo the attendance trend
has been affected by a deliberate reduction in the promotional spend from recent
high levels, but spend per head has increased further and the operating profit
margin has been maintained at around 30%. In Grosvenor Casinos the positive
trends shown in the first half have continued, helped by the roll-out of
electronic roulette with some 400 positions now in place. The relocated Brighton
casino opened in August and the new Hard Rock Casino in London will open later
this month.
Across Gaming we are benefiting from the progressive liberalisation of
regulations. Within casinos we are now permitted to have alcohol on the gaming
floor, live entertainment and additional new games including progressive stud
poker. Within Mecca Bingo the higher pay-out slot machines are gradually being
installed and we are now hopeful that gross profits tax will replace the
existing duty regime during 2003.
Rank Interactive Gaming has expanded its offering with the launch of additional
games including a product akin to cash line bingo which is so successful in
Mecca Bingo clubs. The run-rate of stakes for this business now exceeds £1.5m
per week.
Within Hard Rock, like for like sales comparisons have, as expected, improved
against last year when sales were significantly impacted by the events of 11
September. Underlying trading conditions were similar to the first half trend
with food and beverage showing a good recovery but merchandise remaining weak,
primarily in the major tourist locations. The Minneapolis cafe opened in
September and Leeds will open in December.
Deluxe has maintained the momentum generated in the first half. Film volumes are
very high in both North America and Europe. The joint venture with Atlab in
Australia is now in place and technically advanced facilities are being
installed to improve operational efficiency. The integration of the combined
Deluxe and Ritek DVD facilities has been completed successfully and trading is
in line with our expectations. Combined DVD and VHS volumes in the period were
ahead of last year.
We consider that the general trading outlook for Rank for the balance of 2002 is
firm.
Enquiries:
The Rank Group 020 7706 1111
Ian Dyson, Finance Director
Kate Ellis-Jones, Director of Investor Relations
Press Enquiries:
The Maitland Consultancy
Suzanne Bartch 020 7379 5151
This information is provided by RNS
The company news service from the London Stock Exchange
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