Rank Group reported a 5% rise in like-for-like Net Gaming Revenue (NGR) during the first quarter of its 2026/27 financial year, reaching £216.1 million ($286.5 million) for the period ending September 30, 2026. The company noted that this growth occurred across several channels despite changing market dynamics and described the quarter as "a strong start to the new financial year." Assuming no alterations to the current tax structure for the UK industry, Rank anticipates that its group operating profit will align with market expectations for the full year.
However, CEO Richard Harris expressed concern about the potential impact of a proposed doubling of the UK's Machine Games Duty (MGD), which may be included in the government's upcoming autumn budget. He emphasized that increased MGD rates could raise operating costs for the company, negatively affecting the viability of venues. Harris remarked, "Any increase to Machine Games Duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment." He highlighted that last year, HM Treasury recognized these economic issues, asserting the importance of casinos and bingo clubs in supporting the government’s economic growth agenda, provided that the right policy conditions are maintained.
An analysis by Deutsche Bank last month positioned Rank as particularly vulnerable if an MGD hike were to transpire. The investment bank estimated that the duty increase could result in an added cost of approximately £35 million annually, which would represent around 44% of the company's projected EBIT for 2028 and about 17% of EBITDA in the short term, even with some cost mitigation.
Digital revenue for the company saw a 6% increase in like-for-like NGR, totaling £64.9 million for the quarter, driven mainly by the UK digital segment, which grew by 6%, largely due to the performance of Mecca’s online brand. International digital NGR also experienced a 4% rise, indicating a strong market presence abroad.
Grosvenor Casinos contributed a 6% increase in like-for-like NGR, reaching £108.1 million, bolstered by a 1% rise in visits and a 5% increase in customer spending per visit. Mecca bingo halls held steady with a like-for-like NGR of £32.2 million, although they faced a 3% drop in visitor numbers, attributed in part to an extended period of warm weather. Nevertheless, a 3% increase in spending per visit helped stabilize revenue.
Rank’s Spanish venue subsidiary, Enracha, reported a 7% rise in like-for-like NGR, reaching £10.9 million, mainly due to an 11% increase in electronic gaming revenue, highlighting its growing presence in Spain.
During this quarter, gaming machines were particularly successful, with revenues climbing by 14%. While table gaming and electronic gaming recorded more moderate growth of 3% and 5%, respectively, Rank Group expressed confidence in optimizing its machine estate to boost revenues further.
In a strategic move, the group has closed three venues located in Swansea, Reading Central, and Sunderland, determining they were "no longer economically viable in the medium term." Earlier this year, Rank announced that it expects an underlying operating profit of at least £76 million for the fiscal year ending in June 2026. The company indicated a 6% year-on-year growth in like-for-like NGR, totaling approximately £834.1 million for the past 12 months. This positive trajectory continued into the fourth quarter, with an NGR of £208.9 million, reflecting a 6% increase compared to the previous year. Rank Group plans to disclose its interim financial results for the six months ending December 31, 2026, on January 28, 2027.
