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Rank Group Wants to Focus on Gambling

LONDON, England – As reported by Bloomberg: "Rank Group said Tuesday that it was considering whether to sell or split off its Hard Rock Cafe unit to focus on gambling, a move that would complete the breakup of a group that once included film studios and holiday camps.

"Rank will decide whether to keep Hard Rock after it carries out a review in the next few months, the London- based company said in a statement. The division, with 120 restaurants and six hotels and casinos, had revenue of £250.1 million, or $462 million, and operating profit of £34.8 million in 2005.

"A sale would leave Rank, owner of Mecca Bingo and Grosvenor Casinos, solely focused on gambling and provide the company with funds for expansion as Britain relaxes laws governing the $3.8 billion gambling industry. Hilton Group underwent a similar transformation last year when it sold its hotels to concentrate on Ladbrokes, the world's biggest chain of bookmakers.

"…Shares of Rank rose 5.75 pence Tuesday to close at 204 pence in London. The stock has dropped 33 percent this year, making it the worst performer in the 30- member FTSE 350 Travel & Leisure index, which has gained 2.5 percent…"

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