LONDON (ShareCast) - Gaming company Rank Group reported a 23 per cent fall in pre-tax profit to 27.7m pounds in the first half, reflecting a weak performance of its casino and bingo businesses.

Operating profit at its Grosvenor Casinos venues and Mecca bingo clubs fell 26% and 38% on a like-for-like basis, respectively.

The group said profits were also affected by higher costs in relation to the acquisition of 19 casinos.

During the period, Rank invested £29.7m of capital, of which 80% of was deployed in Grosvenor Casinos for new products, rebranding, refurbishments and conversions of the acquired casinos.

The expansion helped boost group revenue by 16% to £352.4m.

Rank is working to tighten the rein on costs to deliver improved performance in the second half.

"We are continuing to implement actions outlined in our first quarter interim management statement to drive both revenue and operating profit that will bring benefits in the second half and future years," said Chief Executive Ian Burke.

"Management anticipates operating profit in the second half, excluding the impact of the acquired casinos, will be broadly in line with the comparable period last year."

RD

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