Rank Blames Stagnant Results on London Casino Market

UNITED KINGDOM – As reported by Bloomberg: "Rank Group Plc, the U.K. owner of the Hard Rock Cafe chain, said operating profit has stagnated in the second half because London's casino market has yet to revive.

"`Results fell short of the comparable performance in 2002'' at three of its London casinos in the 21 weeks after June 30, Rank said.

"…Rank is adding casinos to cut its dependence on American- style cafes in cities such as London and Paris. Growth at the gaming business, which accounted for about a third of revenue last year and posted a 14 percent gain in operating profit in this year's first half, may now be slowing.

"…Rank shares fell as much as 18.75 pence, or 6.2 percent, to 283 pence. They traded at 284.5 pence at 12:17 p.m. in London.

"…Sales and operating profit at casinos outside London rose at a slower pace than in the first half of the year, Rank said. With 36 casinos in the U.K., the company said it expects to benefit from changes in British gaming laws…"