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Rank Group PLC RNK View profile

Rank Group on track to meet profit expectations after strong start to financial year

Documentary work for the UK National Lottery — Credit: dylan nolte by Unsplash
dylan nolte by Unsplash

Rank Group, the casinos and bingo operator, said it is confident of delivering full-year operating profit in line with market expectations after posting 5% revenue growth in its first quarter.

Group like-for-like net gaming revenue (NGR), the key measure of gambling turnover after customer incentives, rose to £216.1 million in the three months to 30 September.

The company will announce interim results for the six months to 31 December 2026 on 28 January 2027.

Digital like-for-like NGR grew 6%, driven by the UK business and notably the Mecca online brand, which grew 7%, despite higher gambling taxes introduced in April and reduced above-the-line marketing spend.

Grosvenor casino venues were the standout performer, with like-for-like NGR up 6%, as a 1% increase in customer visits combined with a 5% rise in spend per visit.

Gaming machines were particularly strong within Grosvenor, with revenue up 14%, which the company said reinforces its confidence in further improvement as it optimises the machine estate.

Table gaming revenue grew 3% and electronic gaming 5% across the Grosvenor estate.

Mecca bingo venues were flat in the period, with customer visits down 3% offset by a 3% increase in spend per visit, with the company attributing the visit softness partly to the prolonged spell of hot weather during the quarter.

Spanish venues brand Enracha continued to perform well, with like-for-like NGR up 7%, driven by 11% growth in electronic gaming.

During the quarter, Rank closed three venues in Swansea, Reading and Sunderland, which it said were no longer economically viable in the medium term.

Chief executive Richard Harris warned that any increase to Machine Games Duty in the upcoming Budget would raise costs, reduce venue viability and lead to closures and job losses.

He said the Treasury had recognised those economic arguments last year, and argued that casinos and bingo clubs could play a role in the government's growth agenda under the right conditions.