Fewer people headed to Rank's Mecca bingo halls

Profits at the group fell to �71m ($130.6m) during the six months to 30 June. from �72.4m a year earlier.

Rising utility and minimum wage costs hit its Mecca bingo halls. Customer numbers also fell - but this was offset by an increase in player spending.

Rank said the planned sale of its Deluxe Media unit was progressing well.

Chief executive Mike Smith told the Reuters news agency that he hoped the sale of Deluxe Media - which manufactures and distributes DVDs - would be completed by the end of the year.

The planned sale of Deluxe Media is advancing Rank statement See Rank's share price

Film sell-off?

Rank said that its Hard Rock Cafes, Deluxe Film unit and casinos had fared well.

However, is said weak margins in sports betting at its Blue Square internet site had also weighed on its profits, despite punters placing more bets.

Looking ahead, the group warned it expected "little change, with further improvement in Deluxe Film and Hard Rock offset by subdued performance in the current UK gaming market".

The group also revealed that, in addition to selling Deluxe Media, the possible sale of its Deluxe Film unit was becoming increasingly likely.

Rank had first mooted the possibility of either selling or spinning off the unit in September last year.

"The planned sale of Deluxe Media is advancing. The separation of Deluxe Film is now more likely to be achieved by way of sale," it said.