Rank Group PLC
06 December 2005
The Rank Group Plc trading update
48 weeks to 25th November 2005
Since the half-year, the trading performance of the group has followed similar
trends to those witnessed in the first half. Revenues are up year-on-year, but
operating costs are higher and sportsbook margins remain weak. As a consequence
we expect adjusted profit before tax for continuing operations to be slightly
lower than in 2004.
Gaming
In Mecca UK, revenue for the year to date is broadly flat, driven by 6% growth
in spend per head and a 6% fall in admissions. Operating margin remains under
pressure from labour and energy related cost inflation. Top Rank Espana, the
Spanish bingo operation, continues to deliver steady growth.
In Grosvenor Casinos, we have generated 3% growth in revenue for the
year-to-date, with admissions up 9% but handle per head down 7%. Revenue growth
has accelerated since the start of October as a result of higher admissions and
increased contributions from slot machines. However, it is too early to ascribe
with precision how much of this may be driven by the changes in gambling
regulations, due to current levels of promotional activity in the business.
Since the half-year we have secured a licence for a new casino in
Stockton-on-Tees, bringing the total of new licences granted this year to six.
Applications are in place for a further four casinos.
Blue Square's performance has stabilised following a weak first half. In sports
betting, win margins remain down year-on-year but we are generating strong
customer and volume growth in on-line gaming, largely from our casino, poker
room and bingo products.
Hard Rock
At Hard Rock we have generated 4% growth year-to-date in like-for-like sales
(company-owned operations only) with food and beverage up 5% and merchandise
ahead by 1%. Strong trading at the relocated Hard Rock Cafe New York (which
opened in September) contributed to this performance.
Hard Rock Casinos and Hard Rock Hotels continue to drive revenue growth within
franchised operations, albeit at a slower rate than in the first half (which
benefited from the year-on-year impact of the opening of the Seminole casinos in
May 2004).
Deluxe Film
Deluxe Film has performed well, with Film Laboratories delivering year-on-year
growth in footage processed and distributed. Creative Services continues to be
the main driver of profit growth and is well positioned to take advantage of
developments in the digital sector of the market.
Sale of Deluxe Film and sale of Deluxe Media Services
We are making steady progress with the planned sales of both Deluxe Film and
Deluxe Media Services. We have preferred but not exclusive bidders for each
business.
-Ends-
Enquiries:
The Rank Group Plc
Dan Waugh, director of investor relations: +44 (0) 20 7535 8031
The Maitland Consultancy
Suzanne Bartch: +44 (0) 20 7379 5151
This information is provided by RNS
The company news service from the London Stock Exchange
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