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Gambling & Betting The Rank

Rank Group posts first-quarter revenue growth across venues and digital

by tickstock newsroom · Editor JMA

The Rank Group (LSE:RNK), the London-listed operator of Grosvenor Casinos and Mecca bingo clubs, said group like-for-like net gaming revenue rose 5% to £216.1m in the first quarter to 30 September.

Digital like-for-like revenue grew 6% to £64.9m, with venues like-for-like revenue also up 5% at £151.2m across the Grosvenor, Mecca and Enracha brands.

Grosvenor venues delivered like-for-like growth of 6% to £108.1m, with visits up 1% and spend per visit up 5%; gaming machine revenue rose 14%, which the company said underlines its confidence in further improvement as it optimises the machine estate.

Mecca venues were flat on a like-for-like basis at £32.2m, with customer visits down 3% against a 3% rise in spend per visit; Rank attributed the softness in visits largely to a prolonged spell of hot weather in the UK.

Enracha, Rank's Spanish venues business, grew like-for-like revenue 7% to £10.9m, driven by 11% growth in electronic gaming.

The company closed three venues during the quarter, in Swansea, Reading Central and Sunderland, which it said were no longer economically viable in the medium term.

Within digital, the UK business grew 6%, with the Mecca brand online up 7% despite the higher tax regime introduced in April and reduced above-the-line marketing spend; international digital revenue grew 4%.

"I am pleased with the revenue growth we have seen in the first quarter, particularly the progress we continue to make in terms of gaming machine performance in Grosvenor and the resilience of our UK digital business," said chief executive Richard Harris.

Harris also addressed speculation around the upcoming Budget, warning that any increase to Machine Games Duty "will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment."

Based on the current UK tax regime, Rank said it is confident of delivering group like-for-like operating profit in line with market expectations for the current financial year, a target that follows the 21% rise in underlying operating profit to £78.6m the group reported for the year to 30 June.

Rank will publish interim results for the six months to 31 December on 28 January 2027.

by tickstock newsroom