The damage to the Hard Rock hotel/casino in Biloxi, originally scheduled to open yesterday, has been widely publicised. In its report on interim results for the six months ended 30 June 2005, the Rank Group says that the opening has been postponed and apparently the intention is to rebuild, which will be welcome news to the state of Mississippi where the economy relies heavily on the casino industry. The Hard Rock Café in New Orleans has suffered substantial damage but Rank has targeted its reopening for the end of the year.

The Gaming Division of Rank has seen development accelerate during the first half of 2005. Casino licences have been approved for Swansea, Dundee, Oldbury, Acocks Green and Reading and another five applications are being processed. The new locations and relocations in Manchester and Ramsgate are expected to open by the end of 2007. Two new Mecca bingo clubs, at Crewe and Paisley, are on track to open next year.

By the end of next month, Rank expects to have increased its jackpot and hybrid slot machines to 678 and electronic roulettes to 790 under the terms of the Gambling Act 2005 coming into effect in October. This represents a 52% increase over numbers at present. The company has stated its intention of applying for all 17 new casino licences approved by the Gambling Act, and has invested £105 million (US$193 million) over the last five years in preparation for deregulation.

Revenue for the first six months of 2005 rose 15%, which was largely due to a 43% increase at Rank’s Blue Square online/telephone operations. The casino/games business has seen higher bet volumes but margins remained weak contributing to an operating loss of £1 million (US$1.83 million) despite an improvement in the profitability of games. For the first time revenues from non-sportsbook activities exceeded the sportsbook. Operating profit was also down on last year at UK Mecca Bingo but up at Grosvenor Casinos. Bingo admission numbers were 5.5% lower and casino admissions higher, particularly in the provinces where the attendance figures were up 20.3%. Hard Rock operating profit was up 40% to £16.4 million (US$30.15 million).

Rank sees profits for the rest of this year remaining flat, as the changes brought by the Gambling Act will not impact at first. Performance improvements by Hard Rock operations in Florida and Deluxe Film have been offset by subdued performance in the UK gaming market. (E-09.02.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage