Rank Group (RNK) H1 2026 earnings summary

Executive summary

• Like-for-like net gaming revenue rose 6% to £419.8m for the half year ended December 2025, with underlying operating profit up 15% to £40.6m and all business segments showing growth.

• Operating profit margin improved to 9.7% from 8.9%, and return on capital employed increased to 15.9%.

• Interim dividend per share increased 54% year-over-year to 1.00p, reflecting confidence in the outlook.

• Statutory operating profit fell 11% to £31.3m, impacted by a £6.5m payment fraud loss in Spain.

• CEO John O'Reilly announced his retirement, with Richard Harris taking over leadership.

Financial highlights

• Net free cash flow for the period was £3.8m, with capital expenditure at £27.6m and full-year guidance of £50m–£55m.

• Closing net cash stood at £39.4m, and net debt including lease liabilities was £165.1m, up 33% from prior year.

• Interim dividend of 1p per share declared, with £9.1m paid in H1.

• Working capital outflow was £5m, and cash flows for separately disclosed items totaled £5.5m, including a £6.5m Spanish payment fraud impact.

• Underlying earnings per share rose 17% to 5.6p; basic EPS fell 25% to 4.0p due to non-recurring items.

Outlook and guidance

• The group remains on track to achieve at least £100m annual operating profit in the medium term.

• CapEx guidance for the full year is £50m–£55m, down from £60m due to timing.

• The abolition of bingo duty from April is expected to deliver an annualized benefit of £6.5m and enable double-digit operating profit in Mecca next year.

• The group anticipates further revenue growth in the second half, supported by a strong pipeline of initiatives.

• Significant cost headwinds expected in Q4 from increased Remote Gaming Duty (RGD) and National Living Wage, with mitigating actions underway.