Wednesday May 7, 07:41 AM
Rank hit by impact of smoking ban and loss of Section 21 terminals UPDATE
(updates with further detail)
LONDON (Thomson Financial) - Rank Group Plc (LSE: RNK.L - news) said the effects of the smoking ban and adverse changes to gaming regulations resulted in lower levels of group revenue compared with the same period the previous year.
On a like-for-like basis, group revenue was 8 percent lower than the same period the year before.
The result reflected the impact of the English and Welsh smoking bans and the implementation of legislation, following the Gambling Act 2005, which outlawed the popular, high stake, Section 21 gaming terminals.
However, Rank said it had experienced a modest improvement in average weekly revenue levels compared with the final four months of 2007, which was the period immediately following the introduction of the new legislation.
Rank added that cost-saving initiatives have strengthened the group's profit performance.
The group said the revenues at Blue Square, its sports betting business, remained strongly ahead of the comparable period in 2007.
Rank said, given the difficult trading environment for its retail gaming businesses, it is 'encouraged' by its 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 group said in a statement.
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