Rank Group says tough trading at its Hard Rock Cafes and film and video business outweighed good performance at its casinos in its first half.
The firm said today profit before tax and exceptional items fell 9 per cent to £77.4 million sterling in the six months to June 30th. The consensus forecast among analysts was £78 million.
"Current trading is satisfactory and the pattern is similar to that seen in the first half," Rank said, raising its interim dividend by 5 per cent to 4.6 pence per share.
Rank's 105 Hard Rock Cafes have been struggling with a global drop in tourism as war in Iraq and outbreak of the deadly SARS virus exacerbated a slowdown in consumer spending.
Rank shares have underperformed the leisure sector by 19 per cent this year. They closed at 273p yesterday, valuing the business at around £1.7 billion.