The Rank Group delivered strong financial results for the year ending June 30, 2025, outperforming expectations across all divisions. Net gaming revenue (NGR) rose to £795.4 million, up 8% year-on-year, with like-for-like NGR up 11%. Operating and net profits also saw a steep climb despite rising costs.
Grosvenor Casinos Fuel Venue Growth
Rank’s land-based venues continued to be the group’s main revenue engine, pulling in £559.6 million — an 11% increase. Grosvenor Casinos led with a 14% jump to £378.4 million, aided by investments in gaming products, customer experience upgrades, and staff development.
London venues generated £117.5 million, up 9%, while locations outside the capital saw stronger growth at 17%, reaching £260.9 million. Visitor numbers were up 3%, and average spend per visit increased by 11%.
Mecca bingo halls also contributed with a 5% bump to £140.3 million, as higher spend per visit offset flat attendance. In Spain, the Enracha brand posted a 9% lift to £40.9 million, supported by machine upgrades and refurbishments.
Digital Gains Despite Regulatory Headwinds
Digital revenue climbed 10% to £235.7 million, with UK online brands contributing £208.8 million. Grosvenor Digital saw a 22% revenue boost, while Mecca Digital added 11%. Average revenue per customer grew 18%.
New regulations introduced in April 2025 — including a 1.1% statutory levy and stake limits on online slots — cut into digital profits, reducing earnings by £1 million in the final quarter alone. Rank expects an annual hit of around £4 million from these changes.
In international markets, Spanish digital performance was flat due to platform constraints, while the group’s Portugal launch is pending regulatory approval.
Profit Jumps and Cash Reserves Strengthen
Operating profit more than doubled to £67.0 million, with underlying profit up 38% at £63.7 million. Pre-tax profit surged 248% to £53.9 million, while net profit came in at £44.6 million. Basic EPS reached 9.5p, and shareholders are set to receive a final dividend of 1.95p, bringing the annual total to 2.60p.
Return on capital employed rose to 14.5%, up from 10.3%, while net free cash flow hit £27.7 million. Net cash (pre-IFRS 16) stood at £45.4 million, against net debt of £130.8 million.
Gambling Reforms to Unlock Growth
From July 2025, new UK rules will allow Rank to install around 850 additional gaming machines across its 50 Grosvenor casinos and roll out sports betting in 38 locations — a first for the group.
CEO John O’Reilly called this an “exciting inflection point” and expects these changes to expand the appeal of casinos to a wider customer base.
Warning on Possible Tax Increases
O’Reilly also cautioned against proposed changes to gambling tax policy. The UK government is mulling a single Remote Betting & Gaming Duty to replace the tiered system, and some policy groups are pushing for a steep hike to 50%.
Rank paid £189 million in taxes in FY25 — roughly 80% of its revenue. O’Reilly stressed that further tax increases could tip viable businesses into loss-making territory, shrinking competition and harming consumers.
Rank heads into FY26 with momentum and a clear plan to leverage regulatory changes while navigating evolving digital challenges and tax uncertainties.
