Rank Group (RNK) H1 2025 earnings summary

Executive summary

• Like-for-like net gaming revenue rose 13% year-over-year to £401.8 million, with all business segments contributing to growth.

• Underlying like-for-like operating profit increased 55% to £32.9 million, with operating margin up to 8.2% from 6.0%.

• Profit after tax surged 228% to £28.9 million, and basic EPS increased to 6.2p from 1.9p.

• Interim dividend of 0.65p per share announced, reflecting confidence in ongoing performance.

• Sale of UK non-proprietary digital business completed, contributing to profit.

Financial highlights

• Group underlying like-for-like operating profit: £32.9 million (+55% YoY); underlying profit before tax: £27.8 million (+71%).

• Profit after tax: £28.9 million (up from £8.8 million YoY).

• Net cash pre-IFRS 16: £24.2 million (up from £17.6 million at prior period end).

• Net debt including lease liabilities at £111.8 million (down from £144.7 million YoY).

• Capital expenditure increased 41% to £27.3 million, with full-year guidance of £55–60 million.

Outlook and guidance

• Full-year like-for-like operating profit now expected to be slightly ahead of previous expectations.

• Employment costs to rise 10% in FY25 and 6–7% in FY26; statutory levy adds ~£4.5 million per annum from April 2025.

• CapEx for FY24/25 and FY25/26 expected at £55–60 million, focused on growth and regulatory reforms.

• Interest costs forecast at £10.0–10.5 million for FY25 and ~£10 million for FY26.

• Positive trading momentum continues into H2, with strong Christmas and January performance.