Rank’s bingo operations outperformed expectations with turnover up 17% the firm said in its half-yearly results, which also confirmed a significant leisure expansion plan.
Rank has strengthened its leading UK position with the success of new-style clubs. Admissions rose by 4% and spend per head by over 8%, while operating profit was up by 12%.
Odeon cinema admissions increased by 11% and retail spend by 8%. Nighclubs saw a rise in profits and the new Hotshots sports bars and Jumpin’ Jaks music bars also made a positive contribution.
A record number of new leisure retailing venues will open in the second half of the year. Five new Tom Cobleigh pub-restaurants opened in the first half, bringing the total to 55. Sixteen more are due to open in the second half with 25 planned for 1998.
Six owned Hard Rock cafes, five Odeon multiplex cinemas, four Mecca bingo clubs, the Southampton multi-leisure centre and Warner’s Nidd Hall hotel, will also open in the second half of the year.
Overall, turnover was up 4% to £853m with operating profit down 2% at £90m. Rank raised £1bn in June from selling its remaining interest in Rank Xerox.
“Rank is now much more strongly focussed on leisure and entertainment, on leveraging its skills, revitalising its brands and investing for future growth,” said Sir Denys Henderson, Rank’s chairman.
EGi News 08/08/97
