Rank Group Warns on Future Costs as H1 Profit Slips

Rank Group reported total net gaming revenue of £420 million for the six months to 31 December 2025. This is a 5% increase year-on-year.

Growth was recorded across all segments of the business. However, rising costs, including higher taxation, meant group net profit fell 26% to £18.5 million.

Operating profit declined 11.1% to £31.3 million. Finance costs and increased taxation reduced pre-tax profit to £23.9 million.

The results follow UK gambling sector trends. There’s clear revenue resilience, but margin pressure.

Higher UK Gambling Tax Looms

Outgoing CEO John O’Reilly acknowledged the strong revenue performance but warned that cost headwinds are intensifying.

In November, the UK government confirmed that remote gaming duty will increase from 21% to 40% from April 2026. A new remote betting duty of 25% will also be introduced in April 2027.

O’Reilly previously described the tax rise as a “significant blow” to the UK market.

“The second half of the year will bring further cost headwinds, principally in our UK digital business. We have already executed measures to mitigate some of this impact while continuing to prioritise customer experience.” John O’Reilly, outgoing CEO

While bingo duty has been abolished, the overall tax environment remains challenging.

Growth Across Venues and Digital

Rank’s Grosvenor venues business generated £204 million in revenue, up 6%. The increase was supported by the installation of 850 additional gaming machines following land-based casino reforms last July.

Mecca Bingo venues recorded revenue of £67 million, up 4%, despite a slight drop in visit volumes and the closure of one venue.

In Spain, the Enracha business reported a 6% revenue rise to £21 million.

Digital delivered the strongest growth, with revenue up 8% to £114.8 million. UK digital revenue increased 9%, with Grosvenor digital up 17% and Mecca digital up 5%. Average revenue per customer rose 18%.

Leadership Transition

The results mark the end of O’Reilly’s tenure as CEO. Chief Financial Officer Richard Harris has stepped in as interim CEO.

O’Reilly said the group remains resilient and well-positioned for the future, despite regulatory and tax disruption.

The challenge now will be getting to grips with rising costs while sustaining both digital growth and venue performance amid the changing goal posts.