Rank Group profit set to beat forecasts despite £5m provision

Rank Group expects to report stronger-than-forecast profits for its 2025/26 financial year after continued revenue growth across all of its core divisions helped offset higher taxation and a planned £5 million regulatory settlement with the UK Gambling Commission.

The operator said underlying operating profit for the year ending 30 June will reach at least £76 million. This is comfortably ahead of previous market expectations of £63.7 million. The update follows the recent appointment of Richard Harris as permanent chief executive, after serving as interim CEO since January.

Revenue growth continues across the business

Like-for-like net gaming revenue increased 6% year-on-year to approximately £834.1 million, with similar momentum maintained during the fourth quarter.

Every division delivered annual growth, although Grosvenor Casinos and the digital business remained the key contributors.

Grosvenor generated £397.3 million in annual NGR, rising 5%, while the digital division posted the strongest growth, with revenue climbing 8% to £248.5 million and fourth-quarter revenue increasing 12%.

Mecca Bingo recorded 4% annual growth, while Spain's Enracha Casinos delivered a 7% increase despite being impacted by a €7.1 million payment fraud discovered late last year.

Rank said operating costs remained tightly controlled throughout the year, helping protect profitability despite increasing cost pressures.

"Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year."— Richard Harris, CEO, Rank Group

£5m settlement provision reflects regulatory review

Alongside the trading update, Rank confirmed it has included a £5 million provision within its accounts relating to an anticipated settlement with the Gambling Commission.

The proposed agreement follows the regulator's review of Grosvenor Casinos Limited's operating licence, covering compliance issues identified between November 2024 and May 2025.

Rank submitted its settlement proposal in May, offering the payment in lieu of a financial penalty under the Commission's revised enforcement guidance introduced in October 2025.

The operator said it has already substantially implemented remedial measures and continues to engage constructively with the regulator while awaiting formal confirmation of the settlement.

Gaming machines continue to power Grosvenor growth

Gaming machines remained one of Rank's strongest-performing assets during the year.

Machine revenue at Grosvenor Casinos rose 12% during the fourth quarter, improving on the 10% growth reported in the previous quarter.

The increase follows the rollout of around 850 additional gaming terminals after UK casino reforms came into force last year, expanding the estate by around 60%.

Rank said gaming machines continue to represent one of its biggest long-term growth opportunities as it works towards its medium-term operating profit target of at least £100 million.

Meanwhile, the digital business continued to perform strongly despite the sharp increase in Remote Gaming Duty from 21% to 40% introduced in April.

Rather than cutting customer acquisition activity, Rank focused its cost-saving efforts on above-the-line marketing, supplier spending and headcount, helping maintain both revenue growth and profitability despite the higher tax burden.