Rank declares a full house
THANK heavens for bingo. Gambling on the game of numbers is Rank's most developed and biggest single business. It grows steadily and has propped up profits in the past five months.
The group says bigger prizes, scrapping entrance charges, installing Jackpot machines and a swing towards players aged under 45 with greater spending power have helped to drive bingo earnings while the rest of the group has been under pressure.
A weak dollar and falling international tourism hit the group's Hard Rock restaurants.
The Deluxe Media duplicating business has suffered some erosion of profit margins on a switch from VHS to DVD - despite buoyant business at Deluxe Film from films such as Master and Commander, Kill Bill and Elf.
While the high-rolling Clermont and Park Tower casinos have performed well, the mid-market properties suffered setbacks and the growth of provincial casinos slowed.
Rank's 2003 profits will be in line with City forecasts of £194m, down from £200m last year.
Analysts were disappointed with the pressures on earnings and the shares fell 16 1/2p to 285 1/4p. They look a firm hold with deregulation of casinos promising benefits for 2004 and a forward price/ earnings multiple of 13.
