Rank Group has revealed it remains cautious about results for the year to 17 April, as, while Hard Rock sales are improving, its gaming division has been hit by big wins at its high end Clermont casino and the introduction of money laundering regulations.
Grosvenor Casinos saw overall turnover fall by 2 per cent, but this was mainly due to high rollers turning the tables on the Clermont, as, without the casino’s losses, the division would have been up by 6 per cent.
Trading in London has improved, but casino turnover in the provinces was flat, which Grosvenor attributes to the impact of new money laundering rules and general competitive pressures being mitigated by a stronger win percentage.
In the Mecca Bingo division, removing admission fees during the last quarter of 2003 has improved its admission trend with attendance down only 4 per cent, and spending per head rising 5 per cent compared with last year. Overall, turnover for Mecca is up 1 per cent.
Blue Square also delivered a strong result, however, with successful sales during the Grand National and Cheltenham Festival.
Hard Rock’s performance has also been encouraging, with the cafés reporting like for like sales up 3 per cent – though this came mainly through food and beverage sales, which were up 6 per cent, as merchandise sales were down by 4 per cent.
The first of two Hard Rock branded hotel and casino developments on Seminole Indian Nation land in Tampa has opened and is trading in line with expectations, while a second is due to open next month (May).
The Florida Hard Rock hotels are performing well, the Hard Rock Hotel Chicago opened earlier this month (April) and further hotel deals are expected to be announced in the near future.
Rank has also announced that the Joint Committee’s report on the Draft Gambling Bill was a positive step forward and that it is continuing with its strategy for expansion to capitalise on the updating of gaming regulations. It will have four facilities offering both bingo and casinos by the end of 2004 and a fifth opening in 2005.
