6th Dec 2005 07:01
Rank Group PLC06 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 similartrends to those witnessed in the first half. Revenues are up year-on-year, butoperating costs are higher and sportsbook margins remain weak. As a consequencewe expect adjusted profit before tax for continuing operations to be slightlylower than in 2004. Gaming In Mecca UK, revenue for the year to date is broadly flat, driven by 6% growthin spend per head and a 6% fall in admissions. Operating margin remains underpressure from labour and energy related cost inflation. Top Rank Espana, theSpanish bingo operation, continues to deliver steady growth. In Grosvenor Casinos, we have generated 3% growth in revenue for theyear-to-date, with admissions up 9% but handle per head down 7%. Revenue growthhas accelerated since the start of October as a result of higher admissions andincreased contributions from slot machines. However, it is too early to ascribewith precision how much of this may be driven by the changes in gamblingregulations, due to current levels of promotional activity in the business. Since the half-year we have secured a licence for a new casino inStockton-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 sportsbetting, win margins remain down year-on-year but we are generating strongcustomer and volume growth in on-line gaming, largely from our casino, pokerroom 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 merchandiseahead by 1%. Strong trading at the relocated Hard Rock Cafe New York (whichopened in September) contributed to this performance. Hard Rock Casinos and Hard Rock Hotels continue to drive revenue growth withinfranchised operations, albeit at a slower rate than in the first half (whichbenefited from the year-on-year impact of the opening of the Seminole casinos inMay 2004). Deluxe Film Deluxe Film has performed well, with Film Laboratories delivering year-on-yeargrowth in footage processed and distributed. Creative Services continues to bethe main driver of profit growth and is well positioned to take advantage ofdevelopments 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 andDeluxe Media Services. We have preferred but not exclusive bidders for eachbusiness. -Ends- Enquiries: The Rank Group PlcDan Waugh, director of investor relations: +44 (0) 20 7535 8031 The Maitland ConsultancySuzanne Bartch: +44 (0) 20 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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