Rank Group Plc reported a stronger-than-expected financial performance for its fiscal year ending June 30, 2026, despite facing a regulatory settlement with the UK Gambling Commission. On Tuesday, the operator of Grosvenor Casinos, Mecca Bingo, Spain's Enracha Casinos, and a UK-focused digital gaming operation projected its underlying operating profit to reach at least £76 million. This figure surpasses previous market expectations of £63.7 million indicated in their Q3 results.
The company saw a 6% year-on-year increase in like-for-like net gaming revenue (NGR), reaching approximately £834.1 million for the entire year. This upward trend continued into the fourth quarter, where the like-for-like NGR amounted to £208.9 million, reflecting a comparable 6% rise.
Grosvenor Casinos contributed £397.3 million in NGR for the year, up 5%, while fourth-quarter NGR grew by 3% to £98.3 million. The digital sector experienced the highest annual growth, with fiscal year NGR rising by 8% to £248.5 million and fourth-quarter NGR climbing 12% to £63.9 million. At Mecca Bingo, the full-year NGR hit £143.0 million, a 4% increase, with fourth-quarter NGR also rising by 4% to £35.4 million.
Enracha Casinos in Spain produced FY NGR of £45.3 million, marking a 7% year-on-year increase, with Q4 NGR growing by 6% to £11.3 million. However, the operator's Spanish division was impacted by a €7.1 million ($8.2 million) payment fraud last December. Rank Group reported the incident to law enforcement and is conducting its own investigation alongside an external law firm.
The performance at Mecca Bingo and Enracha Casinos met expectations, and Rank maintained tight control over operating expenses across all divisions.
In addition, Rank disclosed plans to incorporate a £5 million provision in its 2025/26 accounts concerning a potential regulatory settlement with the UK Gambling Commission. This follows preliminary results from an ongoing review of Grosvenor Casinos Limited's operating license, which dates from November 1, 2024, to May 1, 2025. On May 20, Rank submitted a settlement proposal that included a £5 million payment instead of a financial penalty, calculated based on gross gambling yield and recent guidance from the Gambling Commission effective in October 2025. The company awaits a formal letter of finalization from the regulator, stating that it has made substantial remedial changes during the first half of the year and has engaged constructively with the regulator.
The improvement in gaming machine revenues at Grosvenor venues was notable, with a 12% increase in the fourth quarter, up from 10% growth in Q3. This rise follows a significant expansion of the estate, adding about 850 gaming terminals after UK government legislation allowed for more machines on-site starting last July. The total number of machines increased by 60%. The group identified this growth in gaming machines as a significant opportunity for its broader expansion strategy.
Richard Harris, Rank's chief executive, commented that gaming machine revenue growth presents a significant opportunity for the group. He was made permanent CEO after previously serving as CFO since 2022, and under his leadership, Q3 gaming machines marked the operator's fastest-growing vertical, with NGR rising 10%.
Rank's digital division, the second-largest revenue source after Grosvenor, saw a 12% increase in like-for-like NGR during the fourth quarter. This acceleration occurred despite the UK government's rise in Remote Gaming Duty from 21% to 40%, enacted on April 1, 2026. To manage margin pressures, Rank reduced spending on above-the-line marketing, supplier costs, and workforce size while maintaining performance marketing and customer incentives.
Harris explained that the expected profit for the year reflects substantial progress in executing growth strategies, despite significant cost and tax challenges. Rank reaffirms its medium-term objective of achieving a minimum of £100 million in operating profit. The company plans to publish its preliminary results for the 2025/26 financial year later this summer.
