Rank Group forecasts FY26 profit at least £76m, beating consensus despite regulatory provision

Rank Group has reported full-year underlying operating profit of at least £76 million for the 12 months to 30 June 2026, coming in around 11.4% above the company-compiled analyst consensus of £68.2 million despite absorbing a £5 million provision for a proposed UK Gambling Commission settlement. The operator, which owns Grosvenor Casinos, Mecca Bingo, Spain’s Enracha Casinos and a UK-facing digital business, said group like-for-like net gaming revenue (NGR) rose 6% year-on-year to approximately £834.1 million, with the fourth quarter matching that growth rate at £208.9 million.

Division-by-division growth

All four operating segments recorded year-on-year revenue increases. Grosvenor Casinos generated full-year NGR of £397.3 million, up 5%, though fourth-quarter growth slowed to 3% at £98.3 million. Mecca Bingo posted full-year NGR of £143.0 million, up 4%, and fourth-quarter revenue of £35.4 million, also up 4%. In Spain, Enracha Casinos reported full-year NGR of £45.3 million, a 7% rise, while fourth-quarter NGR climbed 6% to £11.3 million. Rank noted that performance at both Mecca and Enracha remained in line with expectations.

The digital division delivered the strongest growth. Full-year digital NGR increased 8% to £248.5 million, and fourth-quarter digital NGR accelerated to a 12% rise, reaching £63.9 million. Within the UK digital business, fourth-quarter growth jumped to 12% from just 2% in the preceding quarter.

Regulatory provision and historical compliance

Rank disclosed a £5 million provision in its 2025/26 accounts relating to a proposed settlement with the UK Gambling Commission. The review covers historical compliance failings at Grosvenor Casinos Limited between 1 November 2024 and 1 May 2025. Rank submitted a settlement proposal on 20 May 2026, offering a £5 million payment in lieu of a financial penalty, calculated using gross gambling yield and the regulator’s revised penalty guidance from October 2025. The Gambling Commission has indicated it is minded to accept the proposal, though Rank is still awaiting a formal finalisation letter. The company stressed that remedial actions were substantially implemented during the first half of the year and that engagement with the regulator remains constructive.

Digital momentum amid higher gaming duty

Rank’s UK digital business continued to grow despite Remote Gaming Duty rising from 21% to 40% on 1 April 2026. Management chose to protect performance marketing and customer incentives, offsetting the higher tax burden by cutting above-the-line marketing spend, supplier costs and headcount. Chief Executive Richard Harris said the profit outturn “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.”

Gaming machine expansion drives Grosvenor

Gaming machine revenue remained a key growth driver at Grosvenor, rising 12% in the fourth quarter, up from 10% in the third quarter. Rank added approximately 850 gaming terminals across its estate during the first half of the year, a 60% increase, following UK regulatory changes in July 2025 that allowed casinos to raise machine numbers. Harris described gaming machine revenue growth as a “significant opportunity” for the group.

Outlook

Rank reaffirmed its medium-term target of achieving at least £100 million in operating profit. The company is scheduled to publish its preliminary results for the 2025/26 financial year on 13 August 2026. Earlier in the year, Rank disclosed that its Spanish Enracha business was the victim of a €7.1 million payment fraud in December 2025, which it reported to law enforcement and is investigating with external legal support.