Rank Group is confident in achieving its medium-term objective after implementing actions to mitigate the impact of April’s remote gaming duty (RGD) increase to 40% in the UK market.
The operator has implemented ‘significant savings in above the line marketing spend, supplier costs and headcount reductions’ to reduce the effect of the remote gaming duty increase, while protections have been placed on customer incentives and performance marketing spend.
Richard Harris, who is standing in as Interim Chief Executive Officer following the departure of John O’Reilly, commented: “Having implemented the actions required to mitigate much of the impact of higher RGD in our UK digital business, and with clear plans in place to drive sustainable revenue growth, the group is well placed to deliver the medium-term objective of generating at least £100m operating profit.”
Rank stated in its third quarter results for the three months to 31 March 2026, digital like-for-like (LFL) net gaming revenue (NGR) rose by 4% year-over-year (YoY) to £60.9m. Per region, UK operations grew by 2% YoY, while international operations improved by 14% YoY following platform and customer proposition changes over the past year.
Venues’ LFL NGR was up 6% YoY to £144.5m, resulting in group LFL NGR increasing by 5% YoY to £205.4m.
Across venues, Grosvenor LFL NGR was up 5% YoY during the quarter, with growth expected to continue in Q4 despite uncertainty surrounding international travel. Gaming machines rose by 10% with ‘significant room for further improvement’ as more machines are optimised.
Mecca venues LFL NGR increased by 5% YoY, while double-digit operating profit in 2026/27 has been boosted by bingo duty being abolished. Enracha venues LFL NGR improved by 9% YoY following a 27% uptick from gaming machines.
Harris added: “It was pleasing to see continued revenue growth across all businesses and strong profit conversion in Q3, despite a tough macroeconomic backdrop. The results demonstrate the resilience of the business, the strength of the customer proposition and the growth initiatives we have in place.”
Looking ahead, Rank expects ‘further year-on-year revenue growth in Q4 and full year LFL underlying operating profits are expected to be at least £68m’.
This figure takes into account energy cost volatility as it is ‘not expected to have a material impact on profitability in 2025/26 or 2026/27’.
Rank will publish its preliminary results for the full year on 13 August 2026.
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