Rank Group (RNK) H2 2025 earnings summary

Executive summary

• Like-for-like net gaming revenue rose 11% year-over-year to £795.3 million, with growth across all business units.

• Underlying like-for-like operating profit increased 38% to £63.7 million, with operating margin up to 8% from 6.5%, slightly ahead of expectations.

• Return on capital employed (ROCE) improved by 4.2 percentage points to 14.5%.

• Final dividend per share of 1.95p, bringing the full-year dividend to 2.60p.

• Strong cash generation and a net cash position pre-IFRS 16 of £45.4 million.

Financial highlights

• Group NGR up 11% year-over-year; digital revenue up 10%, with Grosvenor digital +22% and Mecca digital +11%.

• Underlying like-for-like operating profit £63.7 million (+38% YoY); net free cash flow £27.7 million.

• ROCE at 14.5%, up from 10.3% in the prior year.

• CapEx increased to £58.5 million, focused on casino reforms and digital modernization.

• Net debt including lease liabilities was £130.8 million, with lease liabilities at 4.4x annual lease payments.

Outlook and guidance

• Expecting to roll out over 850 new gaming machines in FY 2026, with a further 650 over the next 30 months, targeting a 110% increase in machine numbers by end of 2027.

• Digital NGR CAGR expected at 8–12% over the medium term.

• On track to deliver £100+ million operating profit by FY 2028, supported by casino reforms and continued investment.

• CapEx guidance of c.£60 million per annum for the next two years, then normalizing to £50 million.

• NGR grew 9% in the first six weeks of FY2025/26, maintaining positive momentum.