Business
Trading Update
Trading Update.
About this update from Rank Group Plc
[{"type":"text","content":"\n Rank Group PLC\n06 December 2005\n\n\n \n The Rank Group Plc trading update\n 48 weeks to 25th November 2005\n\nSince the half-year, the trading performance of the group has followed similar\ntrends to those witnessed in the first half. Revenues are up year-on-year, but\noperating costs are higher and sportsbook margins remain weak. As a consequence\nwe expect adjusted profit before tax for continuing operations to be slightly\nlower than in 2004.\n\nGaming\n\nIn Mecca UK, revenue for the year to date is broadly flat, driven by 6% growth\nin spend per head and a 6% fall in admissions. Operating margin remains under\npressure from labour and energy related cost inflation. Top Rank Espana, the\nSpanish bingo operation, continues to deliver steady growth.\n\nIn Grosvenor Casinos, we have generated 3% growth in revenue for the\nyear-to-date, with admissions up 9% but handle per head down 7%. Revenue growth\nhas accelerated since the start of October as a result of higher admissions and\nincreased contributions from slot machines. However, it is too early to ascribe\nwith precision how much of this may be driven by the changes in gambling\nregulations, due to current levels of promotional activity in the business.\n\nSince the half-year we have secured a licence for a new casino in\nStockton-on-Tees, bringing the total of new licences granted this year to six.\nApplications are in place for a further four casinos.\n\nBlue Square's performance has stabilised following a weak first half. In sports\nbetting, win margins remain down year-on-year but we are generating strong\ncustomer and volume growth in on-line gaming, largely from our casino, poker\nroom and bingo products.\n\nHard Rock\n\nAt Hard Rock we have generated 4% growth year-to-date in like-for-like sales\n(company-owned operations only) with food and beverage up 5% and merchandise\nahead by 1%. Strong trading at the relocated Hard Rock Cafe New York (which\nopened in September) contributed to this performance.\n\nHard Rock Casinos and Hard Rock Hotels continue to drive revenue growth within\nfranchised operations, albeit at a slower rate than in the first half (which\nbenefited from the year-on-year impact of the opening of the Seminole casinos in\nMay 2004).\n\nDeluxe Film\n\nDeluxe Film has performed well, with Film Laboratories delivering year-on-year\ngrowth in footag...