Rank Bets on Gaming

UNITED KINGDOM – As reported by the UK Times: "Rank staked its future on the growth of gaming after blaming the Hard Rock restaurant and cafe unit for dragging 2003 profits lower.

"Operating profits at the Hard Rock division slid by 16.4 per cent to £23.1 million (US$43.1 million) despite a drive to revive the brand which is seeing the launch of a hotel chain.

"The profits fall was blamed on the weakness of the dollar and 'the absence of any significant recovery' in the global tourism sector, with Far Eastern cafes also affected by the Sars outbreak.

"Mike Smith, the Rank chief executive, said: 'The financial results from Hard Rock were disappointing.'

"…The slide in underlying group profits was trimmed to 3.8 per cent, however, as Rank's gaming division posted a 9.4 per cent rise to £114.7 million in operating profits. The internet gaming unit, boosted by the acquisition of Blue Square, posted maiden profits of £1.9 million, while Rank's provincial casinos achieved a 16 per cent rise in operating profits.

"…Mr Smith said: 'The main focus of our efforts in 2004 will be on gaming where the opportunities for further development, especially following the proposed changes in the UK regulatory environment, could be significant.'…"