After announcing trading results for the first 17 weeks of 2008, Rank Group concludes by saying, “Given the difficult trading environment for our retail gaming businesses we are encouraged by the Group's start to 2008. We have achieved a degree of success in adjusting to the smoking ban and the new gaming regulations and have taken timely action to protect profits. Nevertheless we are conscious that the difficult consumer climate is likely to make 2008 a challenging year for the gaming sector.”

The British Casino Association is reportedly lobbying the British Government for concessions to be given to the casino industry, which has been hard hit by the smoking ban, increased taxation and gaming machine restrictions. The 16 new licences for bigger casinos, which should be approved in the near future, are likely to have a detrimental effect on casino operations in their vicinity. The BCA suggests that any existing casino facing unfair competition should be allowed to relocate.

Rank Group revenue was 8% lower than in the first 17 weeks of 2007. Revenue in the interactive business Blue Square was up 10%; Top Rank Espana was up 7%, as a consequence of the strength of the Euro against Sterling, although in real terms declined by 2%. Mecca Bingo showed a 14% decline and Grosvenor Casinos was down 8%. Overall Rank experienced a modest improvement in average weekly revenue levels compared to the final four months of 2007, after the Gambling Act 2005 was implemented on 1 September.

Admissions were down 14% at Grosvenor Casinos and spend per head up 5%. Revenue declined 4% at London casinos and 13% at provincial casinos. The company comments, “Having taken action to address our cost base, our objective is to return the Group to revenue growth. We are focused on growing the number of visits to our businesses by rewarding loyal customers, reaching out to engage with new customers and raising standards of service and product for all customers.” (E-05.07.08)

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