The Rank Group (LON:RNK) reported like-for-like net gaming revenue (NGR) growth and higher profits for the six months from July to the end of December 2025, with management highlighting continued momentum into the second half following strong Christmas and New Year trading.
Outgoing CEO John O’Reilly, delivering his final set of results before retiring, said the group achieved “another good half” with growth “across all of our businesses.” He said the company remains on track to deliver an operating profit of “GBP 100 million and beyond” over the medium term, a target reiterated by incoming CEO Richard Harris during the presentation.
Headline performance and dividend
He also highlighted an employee engagement score of 8.2 out of 10 and said trading since the period end remained “in line with our expectations.” Despite a “very significant increase in digital gaming taxes” due from April, the board recommended an interim dividend of 1p per share.
Profit drivers, cash flow, and cost pressures
Harris said the 6% like-for-like revenue growth delivered GBP 14.5 million of additional profit after direct costs. That was partly offset by higher employment costs of GBP 6 million, up 4% year over year, which he attributed to the higher national minimum wage and national insurance contributions. He said employment costs are expected to rise by a similar percentage for the full year.
Depreciation increased due to continued capital investment, and the statutory levy was also cited as a headwind. Net free cash flow for the period was GBP 3.8 million, alongside capital expenditure of GBP 27.6 million. The company lowered full-year CapEx guidance to GBP 50 million to GBP 55 million, describing the reduction from the previous GBP 60 million expectation as timing-related and deferred into next year.
Harris said working capital outflow was GBP 5 million in the half, with working capital expected to be broadly neutral for the full year. Closing net cash was GBP 39.4 million; including lease liabilities, net debt was GBP 165 million. He noted lease liabilities rose after lease extensions on key Grosvenor properties and the capitalization of gaming machine leases in Mecca, which also lifted lease payments in the cash flow to GBP 23.4 million.
Separately disclosed cash flows included closed-venue items and the GBP 6.5 million impact of “Spanish payment fraud.” Harris said the group implemented immediate preventive measures, concluded an investigation, and improved payment controls.
Grosvenor: machine rollout, trials, and tech investment
Grosvenor venues posted 6% growth, supported by visit growth. Harris said Q1 revenue increased 8%, while Q2 rose 4% amid lower consumer confidence around the November budget, before strengthening over Christmas and New Year.
Gaming machines were the fastest-growing Grosvenor vertical, with revenues up 11% in the half, supported by the rollout of 850 additional gaming machines after legislative change, completed in December. Average weekly NGR in Grosvenor was up 6% to GBP 7.8 million. Harris said employment costs were the main headwind in Grosvenor, rising GBP 3.8 million, leaving like-for-like operating profit up marginally to GBP 20.9 million.
The company reiterated its medium-term targets for Grosvenor of GBP 9.5 million average weekly NGR and operating margin above 13.5%, an improvement of at least 500 basis points. Harris said where machine counts increased modestly to 30–40, growth was generally strong and revenue per machine sometimes increased. Where estates expanded from around 20 to 80 machines, he said revenue per incremental machine was lower, and Rank is focused on awareness and demand stimulation.
He outlined several initiatives for the next phase:
- Launching a new gaming machine reward scheme in the second half to allow customers to earn and redeem rewards directly on machines
- Expanding machine supplier diversity to six suppliers (from a historic two primary suppliers) and trialing additional suppliers and game packs
- Trials of sports betting propositions in Luton and Leicester, plus a reduced offering in Reading South
- Expanded use of AI via a table management system to optimize table opening and pricing
- Safer gambling initiatives including data-driven processes and trials of facial recognition technology in a number of venues
Harris said The Vic refurbishment benefited London performance, noting total revenues at the venue were up 13% compared with the same period two years ago, with gaming machine revenues up 26% over that two-year window.
Digital and bingo: growth, taxes, and reform tailwinds
Digital revenue grew 8% on a like-for-like basis, with the UK business up 9% and Spain improving to 1% growth for the half year (including 4% growth in Q2). Harris said Grosvenor digital grew 17% and Mecca digital 5%, attributing UK gains to higher average revenue per user and improvements in data science, customer journeys, and incentives. He also cited marketing spend being diverted toward Grosvenor from smaller UK brands as Rank reacts to the upcoming tax environment.
Digital operating profit rose 12% to GBP 17.8 million despite the statutory levy and maximum slot staking limits. Harris reiterated that the November budget implied an estimated GBP 46 million pre-mitigation impact to the UK digital business from a 40% rate. He said Rank has already cut “above-the-line” marketing and TV sponsorships, begun supplier negotiations with benefits expected by early April, and implemented further efficiency efforts, stating most mitigation work has been completed. He also said higher taxation is likely to reduce competition in the licensed market, while warning of risks of unlicensed market growth and noting additional funding for Gambling Commission enforcement.
In land-based bingo, Mecca NGR rose 4%, driven by spend per head. Harris said main stage bingo revenues fell 1% due to investment in additional prize money, while gaming machine revenue grew 9% and now accounts for 43% of NGR. Mecca introduced 600 new tablets, with 59% of visits involving electronic terminals; those customers accounted for 75% of main stage bingo revenue. Like-for-like operating profit in Mecca increased by GBP 2.7 million from GBP 0.7 million last year.
In Spain, Enracha NGR rose 6% on a constant currency basis, and like-for-like operating profit grew 5% to GBP 5.9 million. Harris highlighted refurbishments, including Sabadell reopening, and trials such as an immersive “Bingo Boom” concept in Seville.
Harris also pointed to the abolition of the current 10% bingo duty from April, which he said provides an annualized benefit of GBP 6.5 million and supports expectations that Mecca will reach double-digit operating profit next financial year. He added Rank will introduce a unified membership scheme for Mecca customers across venues and online in the second half.
Looking ahead, management said trading in January was in line with expectations and closer to the stronger first-quarter trend than the softer second quarter. Harris said the UK tax change will likely push back the GBP 100 million operating profit plan by “probably a 12-month lag” versus prior expectations, while maintaining confidence in delivering the target over time.
About The Rank Group (LON:RNK)
The Rank Group Plc has been entertaining Britain since 1937, from its origins in motion pictures to today’s gaming based entertainment brands. Over the course of more than three-quarters of a century, the Group has entertained many millions of customers in Britain and around the world. The Group’s story is one of iconic brands and talented people with a mission to entertain.
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