Rank Group Raises Profit Guidance on Digital Growth, Gaming Machines Surge
The Rank Group has upgraded its profit guidance for the year ending June 2026, as strong performance across digital operations and gaming machines drives financial results beyond market expectations. The casino and betting operator reported a 6% increase in like-for-like net gaming revenue to approximately £834.1 million. Underlying operating profit now stands at a minimum of £76 million, exceeding market consensus. Digital operations delivered robust growth, with net gaming revenue rising 12%, while gaming machine revenue at Grosvenor casinos climbed 12%. The company further confirmed that required remedial measures have been substantially completed and reiterated its medium-term objective of achieving operating profit of at least £100 million.
Rank Group Reports 6% Revenue Jump, Raises Profit Guidance
The operator posted like-for-like net gaming revenue of £205.4 million for the three months ending March 31, 2026, marking a 5% year-on-year increase. By the time the nine-month period concluded, group like-for-like NGR reached £625.2 million, representing a 6% rise from the previous year.
Strong profit conversion from revenue growth prompted Rank Group to revise its full-year outlook. The company now anticipates like-for-like underlying operating profit to reach at least £68 million, an upgrade from its earlier projection of £65 million.
The performance builds on solid six-month results, where group underlying like-for-like net gaming revenue climbed 6% to £419.8 million. Venues contributed £296.1 million with 5% growth, while digital operations generated £123.7 million, advancing 8%. Underlying operating profits surged 22% to £40.6 million during this period.
The board responded by raising the interim dividend 54% to 1 pence per share. Market reception proved favorable, with Rank Group shares climbing 12% following the results announcement and surpassing the £1 threshold for the first time in 2026. Greg Johnson of Shore Capital noted the results demonstrated “material year-on-year operating profit growth” and “excellent conversion on robust revenue growth across all divisions”.
Digital Growth and Gaming Machines Surge Drive Performance
Full-year group like-for-like net gaming revenue climbed 11% to £795.3 million, with venues generating £559.6 million and digital operations delivering £235.7 million. Underlying like-for-like operating profit advanced 38% to £63.7 million, pushing the operating margin to 8.0% from 6.5% in the prior year.
Grosvenor casinos recorded 14% revenue growth, with average weekly net gaming revenue reaching £7.3 million versus £6.3 million in the previous year. The company identified operational and product enhancements supporting an underlying opportunity to achieve £8.0 million in weekly NGR at Grosvenor, excluding benefits from forthcoming land-based reforms. Growth outside London reached 17%, while the capital’s venues posted 9% increases. Visitor numbers grew 3% alongside an 11% rise in spend per visit.
Digital like-for-like revenue growth of 10% aligned with Rank Group’s medium-term target of 8% to 12% compound growth, with margin improvement despite regulatory headwinds. UK digital operations expanded 12%, reflecting strong performance from cross-channel brands.
Meanwhile, Mecca delivered 5% like-for-like NGR growth, supported by upgrades to gaming machine areas and external signage across 50 venues. Enracha posted a 9% like-for-like revenue increase as machine investments lifted visits and spend.
Regulatory Settlement and Medium-Term Strategy
Rank Group previously faced regulatory scrutiny when the Gambling Commission imposed a £500,000 settlement in October 2018 for failures in protecting a problem gambler. The investigation revealed that the operator failed to interact with a customer displaying problematic behavior, contacted him during a self-exclusion period, and did not follow credit provision rules. In one instance, the customer lost £1 million in a 24-hour period at Grosvenor Casino locations and online platforms. The settlement amount reflected Rank Group’s self-reporting of failures and transparency during the investigation. The payment went to GambleAware for research into harmful gambling behavior, with an additional £5,000 covering investigative costs.
The company has since progressed with strategic expansion plans, installing 471 gaming machines across 18 Grosvenor casinos. Rank Group intends to roll out approximately 800 additional gaming machines in the first half of 2025/26 as casino reforms advance. Furthermore, player protection training will extend to over 500 managers across the Grosvenor estate. The operator anticipates changes to customer journeys due to deposit limit requirements from the UK Gambling Commission in the first half of 2025/26. Correspondingly, the company plans major refurbishments at five additional Grosvenor venues while progressing toward market entry in Portugal during 2025/26.
