Rank Group Plc cites strong trading across all business units as the LSE gambling group achieves a 50% increase in underlying net profits of £33m.
Group results reflect a robust first half of 2024/2025 trading, registering underlying revenues of £402m, up 13% on like-for-like (LFL) comparatives of £356m. The Grosvenor unit performed “above expectations,” benefiting from focused investment, generating £215.3m in revenues, marking a 15% increase, while Digital operations saw a 14% rise, reaching £120.2m.
“Grosvenor delivered £7.3m average NGR per week in H1, ahead of our expectations. We now expect Grosvenor to deliver approximately £8.0m average NGR per week in the medium term, excluding the impact of land-based reforms, supported by continued improvements in our customer risk management systems, product offering, and further enhancements in the quality of the customer experience.”
Mecca Bingo venues experienced steady growth, with revenue up 6% to £66.3m. These gains were underpinned by strategic developments that bolstered customer engagement and strengthened Rank’s operational resilience.
Group accounts saw Rank achieve a profit after tax of £28.9m, representing a 228% year-on-year increase. Net cash (pre-IFRS 16) improved to £24.2m, reflecting a 38% rise, while net debt was reduced by 23% to £111.8m from £144.7m.
The Group’s digital expansion played a crucial role in driving performance as the launch of new proprietary Grosvenor and Mecca apps proved to be a “key growth catalyst, with expectations that digital revenues will continue to expand at a compound annual growth rate (CAGR) of 8-12%.
Period trading saw Rank complete the sale of its UK digital multi-brand business in December 2024 for £7.5m, securing an upfront payment of £3.0m, with the remaining £4.5m to be received over the next three years. The sale aligns with Rank’s strategic focus on strengthening its core proprietary offerings.
CEO John O’Reilly commented: “We are pleased to deliver another good set of results as we continue to take advantage of the growth opportunities available to us and maintain strong momentum across all of our businesses. Customers are responding positively to the investment we are making and to the experiences we are delivering both online and in our venues.
The second half will see inflationary employment cost headwinds and the negative financial impact of some of the measures in the Gambling Act, but we are confident that our ability to both grow revenues and secure further cost efficiencies will help us to sustain our positive profit trajectory.
Entering H2, Rank remains optimistic about its long-term strategy despite expected cost pressures in the second half of the fiscal year due to regulatory changes and rising employment costs. Leadership is focused on maintaining revenue growth through continued investment in digital platforms and venue enhancements while driving operational efficiencies to offset financial headwinds.
With the implementation of the UK land-based legislative reforms anticipated in 2025/26, Rank is well-positioned to leverage the new regulatory landscape and sustain its upward trajectory in profitability and shareholder returns.
CEO O’Reilly signed off: “We are readying ourselves to take full advantage of the benefits of the land-based legislative reforms which we expect to see implemented from summer 2025. A programme of venue and product improvements is well advanced as we prepare to better meet the needs of our customers when the time comes.
The benefit of our digital proprietary platforms is increasingly evident in our performance, as we continue to focus on product innovation and investment in our technology. Our vision to optimise a seamless and tailored cross-channel offering for our customers continues to be our priority, with some key initiatives landing in H2.
Thanks to my colleagues across the Rank Group whose commitment to delivering experiences that excite and entertain our customers has delivered this strong set of results.”