Rank Group PLC
28 June 2007
28 June 2007
Rank Group Plc trading update
25 weeks to 24 June 2007
The Rank Group has maintained its solid start to the year, delivering 5% growth
in like-for-like revenue for the first 25 weeks. All of our businesses grew
like-for-like revenue against the same period in 2006. As a result of this
revenue performance and of the cost saving measures introduced last year, the
group delivered strong growth in operating profit in the period. However, as
stated previously, the impact of changes to casino taxation and the anticipated
effects of the smoking ban in England are likely to hold back profit performance
in the second half of the year.
Like-for-like Total revenue
revenue
(adjusted for
club openings,
disposals &
closures)
Mecca Bingo 1% (2)%
Top Rank Espana 3% 3%
Grosvenor Casinos 4% 0%
Blue Square 37% 37%
Group 5% 2%
Mecca Bingo
Mecca Bingo grew like-for-like revenue by 1% with a 7% increase in spend per
head and a 5% decline in admissions. Our clubs in England and Wales grew
like-for-like revenue by 3% with spend per head up 7% and admissions down 3%.
In Scotland, where we operate 14 clubs, Mecca Bingo's like-for-like revenue
declined 10% since the start of 2007, with 3% growth in spend per head only
partly off-setting a 13% decline in admissions. In the 12-week period from the
end of March (which marked the anniversary of the ban's introduction in 2006)
the rate of revenue decline slowed to 1%, and in recent weeks we have begun to
see some early signs of recovery.
In Wales, where we operate three clubs, we have seen revenue fall by 5% on a
like-for-like basis since the introduction of a smoking ban on 2 April 2007.
Top Rank Espana
Top Rank Espana, our Spanish bingo clubs business grew revenue by 3% as it
continued to recover from the effects of the partial smoking ban introduced in
2006.
Grosvenor Casinos
Grosvenor Casinos grew like-for-like revenue by 4% with a 5% increase in spend
per head and a 1% decline in admissions. This performance reflects a return to
growth in admissions since the start of the second quarter (as we anticipated at
the time of our AGM trading statement in May) and an acceleration in revenue
growth. However, the impact of changes to casino gaming duty, which were
implemented on 1 April 2007, diluted the business's profit growth in the period.
Blue Square
Blue Square maintained its strong rate of revenue growth with continued good
performances in both gaming and in sportsbook.
Ends
Rank Group photographs 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 +44(0)20 7153 1540
Lisa Gordon +44(0)20 7153 1548
This information is provided by RNS
The company news service from the London Stock Exchange
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