Rank Group Bullish on “Bright Future” as It Publishes H1 2025/26 Report

The Rank Group has published its interim results for the six months ended December (H1), reporting a strong performance for the period, highlighted by increases in certain key metrics.

The First Half of the Fiscal Year Was a Period of Strength

On January 29, Rank Group published data about its H1 2025 performance, saying that its net gaming revenue for the period reached GBP 419.8 million ($580.4 million), marking an increase of 6% year-on-year. The company’s underlying operating profit, meanwhile, was up 15% to GBP 40.6 million ($56.1 million), but the statutory group operating profit declined to GBP 31.3 million ($42.3 million) due to the impact of a GBP 6.5 million ($9 million) loss caused by a payment fraud in Spain.

In addition to that, the company reported net free cash flow of GBP 3.8 million ($5.25 million) for the period. Rank Group’s closing net cash balance was GBP 39.4 million ($54.5 million), marking a notable increase from GBP 24.2 million ($33.5 million) in the prior year period.

Additional metrics included an increase in return on capital employed to 15.9%. The company’s H1 capital expenditure was GBP 27.6 million ($30.2 million), which was mostly in line with the first half of the prior fiscal year. The company said that it expects its FY 2025/26 Capex to be in the range of GBP 50-55 million ($69.1-76 million).

As for stockholders, the company’s board recommended an interim dividend of 1.00 pence apiece, which implies an increase of 54% year-on-year. Rank Group noted that this highlights the leadership’s confidence in the company’s long-term success.

Thanks to the favorable performance, Rank Group reiterated its target of delivering at least GBP 100 million ($138.3 million) in annual operating profit.

Rank Group Provided Further Details About Its Business

Rank Group provided additional details about the performance of its divisions, saying that its Grosvenor portfolio recorded an average weekly net gaming revenue of GBP 7.8 million ($10.8 million). The company added that the second quarter of the year was softer due to various setbacks, including loss of confidence associated with the industry’s hurdles with the new UK budget.

In H1, Rank Group enhanced its Grosvenor venues by installing 850 new machines across a total of 37 locations.

Rank Group’s business in Spain experienced Q2 growth that offset a slight decline in Q1. In Portugal, the company’s YoBingo brand had its soft launch and is preparing for full launch in February.

The Mecca and Enracha brands also experienced NGR growth of 4% and 6%, respectively.

A Bright Future Awaits

John O’Reilly, Rank Group’s chief executive officer, said that the latest report highlights the group’s improvements, its overall resilience and its knack for taking opportunities across its digital and retail businesses.

Both the underlying metrics and medium-term outlook for the business remain encouraging, and we have the building blocks in place to capitalize on the opportunities ahead of us. 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.

John O’Reilly, CEO, Rank Group

In the meantime, O’Reilly is set to step down as CEO and will be replaced on an interim basis by Richard Harris.