Hard Rock International Releases 2005 Mid-Year Earnings Report

ORLANDO, Fla., Sept. 2  /PRNewswire/ -- Hard Rock International today announced its mid-year earnings for 2005 as part of a report issued by its parent company, The Rank Group Plc (NASDAQ:RANKY).

Total revenues for the first half of 2005 were $225.0 million, increasing by 10% versus $205.4 million for the same period in 2004.  Operating profit showed an increase of 44% with $30.6 million for 2005 versus $21.3 million for the same period in 2004.

Cafes

Revenue from company owned cafes rose from $192.7 million to $204.5 million, and operating profit from $20.2 million to $23.6 million.  Sales in same store company owned cafes were up .4% during this period, with food and beverage sales up 2.2%, and merchandise sales down 3%.

Hotels and Casinos

Revenue from hotels/casinos rose from $4.4 million to $11.4 million and operating profit from $4.4 million to $10.7 million, enhanced by the March and May 2004 openings of the Seminole Hard Rock Hotel & Casino Tampa and the Seminole Hard Rock Hotel & Casino Hollywood, respectively, as well as a strong performance by the Hard Rock Hotel Orlando.

"We are pleased with the strong revenue and operating profit performance in the first half of the year," said Hamish Dodds, president and CEO of Hard Rock International. "We believe that continued execution of our new and comprehensive portfolio and branding strategies will continue to positively influence our business going forward."

Refining the Business and Its Locations

As part of its overall portfolio strategy, Hard Rock International relocated Hard Rock Cafe New York from its 57th Street location to the entertainment and tourist capital of the world, Times Square.  In a seamless move, the former location closed its doors on August 11 and the new location opened for business on August 12.

After reevaluating current locations, the decision was made to close the Choctaw Beach Club, as well as underperforming cafes in both St. Thomas and Newport Beach.  A fire in early July forced the temporary closing of the London cafe.  The location is being refurbished and is scheduled to reopen in late September.

In terms of franchised cafes, in May, a new cafe opened in Caracas, Venezuela and an underperforming cafe in Reykjavik closed.  During the second half of the year, cafe openings are planned for Gran Canaria, Belo Horizonte and Mumbai.

In hotels, the refurbishment of Hard Rock Hotel Madrid is well underway and is expected to reopen in 2006.  The Hard Rock Hotel in San Diego, which is expected to open in 2007, has now been expanded into a 417-room condo/hotel. The Paramount Hotel in New York is performing well and plans are complete for its conversion into a flagship Hard Rock Hotel in Manhattan, just blocks from the new site of the Hard Rock Cafe New York.

Additionally, Hard Rock International has entered into an agreement with Intrawest Corporation to develop lifestyle Hard Rock Hotels at select Intrawest resorts.  Hard Rock and Intrawest are finalizing specific locations and will shortly announce the first lifestyle condominium-hotel.

About Hard Rock International

With 120 high-energy Hard Rock Cafes and 13 Hard Rock Hotels and Casinos in more than 40 countries, Hard Rock International is one of the world's most globally-recognized brands.  Beginning with an Eric Clapton guitar, Hard Rock owns the world's greatest collection of music memorabilia, which is displayed at its locations around the globe.  Hard Rock is also known for its collectible fashion and music-related merchandise, Hard Rock Live performance venues and an award-winning website.  Hard Rock International, Inc. is owned by The Rank Group Plc (NASDAQ:RANKY).  For more information on Hard Rock, visit http://www.hardrock.com/. 

DATASOURCE: Hard Rock International



CONTACT:  John Gogarty, or Deborah Sierchio, both of Coyne PR,

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