Rank Group Revenue Rises as Profit Falls in H1

Rank Group delivered higher revenue across every business line during the first half of its financial year, yet rising tax pressure in the UK pulled profits lower and set the stage for tougher cost conditions ahead.

Good to Know

• Rank Group H1 net gaming revenue reached £420 million
• Group net profit fell to £18.5 million due to higher costs
• UK gambling tax changes will weigh on digital operations from 2026

Rank Revenue Grows as Profit Tightens

Rank Group reported higher revenue across all operating segments during the six months ended 31 December 2025. Net gaming revenue rose 5 percent year on year to £420 million, or about $579.8 million, reflecting steady customer demand across venues and digital channels.

Profit moved in the opposite direction. Group net profit fell 26 percent to £18.5 million after higher operating costs and increased tax expenses weighed on results. Operating profit reached £31.3 million, down 11.1 percent compared with the prior year period.

Outgoing chief executive John O’Reilly acknowledged the mixed picture while pointing to further pressure ahead as new UK tax rules take effect.

Tax Changes Shape the Outlook

UK gambling tax policy remains the central challenge facing Rank as it looks toward 2026 and beyond. In November, the government confirmed that remote gaming duty will rise from 21 percent to 40 percent in April. A new general betting duty tied to remote betting profit will follow in April 2027 at 25 percent, up from 15 percent.

Those changes sit alongside the statutory levy introduced last April. O’Reilly previously described the remote duty increase as a “significant blow” to the UK market, though he noted that the removal of bingo duty should support employment and capital investment in land based 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,” said O’Reilly following the results. “We have already executed measures to mitigate some of this impact, while continuing to prioritise customer experience, and the group will respond with agility as a heavily disrupted landscape takes shape in the UK.”

Venues Deliver Solid Performance

Grosvenor venues, which had its flagship London location revamped in 2025, again led the group on revenue, generating £204 million during the half year, an increase of 6 percent. Performance benefited from the addition of 850 gaming machines across the estate.

Those installations followed land based casino reforms introduced last July, which expanded machine allowances based on venue floor space. Properties measuring 280 square metres can now operate up to 25 machines, while venues exceeding 500 square metres can host up to 80.

Mecca bingo venues posted revenue of £67 million, up 4 percent year on year. Customer visits slipped 1 percent, and one venue in Scarborough closed during the period.

Enracha venues in Spain also delivered growth, with revenue rising 6 percent to £21 million. Customer volumes stayed flat, while spend per visit increased 6 percent, supporting improved liquidity and prize board strength.

Digital Growth Continues

Digital operations recorded the fastest growth across the group. Revenue climbed 8 percent to £114.8 million, while average revenue per customer increased 18 percent year on year.

UK digital revenue rose 9 percent, driven by a 17 percent increase at Grosvenor digital and 5 percent growth at Mecca digital. In Spain, YoBingo, YoCasino, and YoSports lifted digital revenue by 1 percent through incremental gains across all brands.

Costs Offset Gains

Cost of sales increased 3.5 percent to £236.7 million, while other operating costs rose 4.1 percent to £153.3 million. Finance costs of £7.4 million reduced pre tax profit to £23.9 million, down 18.7 percent year on year.

After tax charges of £5.4 million, net profit for the half year settled at £18.5 million, a 25.7 percent decline from the previous year.

“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,” O’Reilly said.

“Customers recognise the investment and improvements we have been making and are responding enthusiastically. Both the underlying metrics and medium-term outlook for the business remain encouraging, and we have the building blocks in place to capitalise on the opportunities ahead of us.”

Leadership Transition Underway

January 29 marked the final day of O’Reilly tenure as chief executive. Rank confirmed earlier in the month that Chief Financial Officer Richard Harris would step in as interim CEO.

O’Reilly joined Rank as CEO in May 2018 after serving as a non executive director at William Hill. His prior roles included managing director of Coral Interactive within the Gala Coral Group under GVC ownership. O’Reilly said:

“As I retire as CEO, I would like to pay tribute to my highly talented colleagues across the group for their enduring commitment to our customers which has again delivered another strong set of results. I am delighted that, as interim CEO, Richard Harris will now take Rank to the next stage of what I am sure is a very bright future.”

Rank also recently confirmed that John Ott, formerly a senior advisory partner at Bain & Company, has assumed the role of chairman.

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