Rank Group Plc has posted strong half-year results, with digital being the fastest growing unit for the period.
Total digital revenue for the six months ending 31 December came in at £123.8m compared to the £120.2m in the same period the previous year – marking a 3% YoY increase. The group’s online operations were the standout growth unit, but a heavy burden lies ahead.
Rank’s flagship Grosvenor casino brand led with 17% growth in online NGR, coming in at £47.9m compared to the £41m in 2024. Meanwhile, Mecca Bingo led total NGR, arriving at £50.7m compared to the £48.1m for the previous corresponding period.
Revenue from Grosvenor Casino venues grew 6% to £204m, with profits capped at £20.9m covering costs of continued venue investments. Mecca Bingo venues brought £69.9m of revenue, with a £2.7m profit compared to £0.7m for H1 2024/25.
In Spain – the third key Rank market next to the UK and the Channel Islands – Rank achieved digital NGR growth of 1% through its proprietary Enracha brand, capped at £14.3m compared to £14.1m for the year prior.
Total operating profits came in at £40.6m compared to the £33m for the 24/25 trading period. The Group has confirmed it now has a solid basis to aim for “at least £100m annual operating profit in the medium term”.
Choppy waters ahead
However, Q4 results will certainly be affected by ongoing tax and statutory levy developments in Rank’s UK home market.
Profit from digital was impacted by mandatory research, education and treatment statutory levy costs at 1.1% of GGY, chipping away £1.2m compared to just £100,000 in H1 2024/25.
Remote gaming duty in the UK will increase from 21% to 40% in April this year, with Rank estimating a £46m annualised impact on UK online operations pre-mitigation.
However, future negative impacts on UK-facing revenue will most likely be offset in part by the abolition of the bingo duty, again in April, which will favour Rank’s Mecca retail division.
John O’Reilly, outgoing Rank Group CEO, concluded: “We continue to deliver improving results which demonstrate the resilience of the Group and our ability to take advantage of the opportunities available to us, both online and in our venues.
“The second half of the year will bring further cost headwinds, principally in our UK digital business, which will be impacted by the UK Government’s huge increase in tax rates.
“We have already executed measures to mitigate some of this impact, whilst continuing to prioritise customer experience, and the Group will respond with agility as a heavily disrupted landscape takes shape in the UK.”
O’Reilly’s retirement comes into effect on 29 January, with CFO Richard Harris taking on the role of an interim CEO from 30 January.