On Thursday, Rank Group reported a 5% increase in its like-for-like Net Gaming Revenue (NGR) for the first quarter of the 2026/27 financial year. For the three months concluding on September 30, 2026, NGR reached £216.1 million ($286.5 million), showcasing steady revenue growth across various channels, despite fluctuating market conditions.
The company characterized the quarter as “a strong start to the new financial year.” Provided there are no changes to the current UK industry tax structure, Rank expects to achieve group operating profit that aligns with market forecasts for the full year.
In the trading update, CEO Richard Harris highlighted a significant concern regarding a potential doubling of the UK's Machine Games Duty (MGD), which could be introduced in the government's forthcoming autumn budget. He noted that increased MGD rates could raise operating costs and pose additional challenges, further stating that such changes would reduce tax receipts and stifle future investments in the sector.
“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,” Harris warned. He pointed out that "HM Treasury recognized these economic arguments last year," emphasizing that casinos and bingo clubs have the potential to bolster the government’s economic growth agenda if policy conditions remain favorable.
In a recent analysis, Deutsche Bank identified Rank as particularly vulnerable if an MGD hike is imposed. They estimated that an increased duty could cost the company around £35 million per year, which would represent approximately 44% of Rank’s projected EBIT for 2028 and about 17% of EBITDA in the short term, even after some mitigations. The bank thus maintained its “hold” rating for Rank, having downgraded it from “buy” earlier this year.
On a positive note, Rank's digital division reported a 6% rise in like-for-like NGR, totaling £64.9 million for the quarter. This growth stemmed largely from its UK digital segment, which also saw a 6% increase, particularly fueled by Mecca’s online brand. Furthermore, international digital NGR grew by 4%, highlighting the strength of markets outside the UK.
Grosvenor Casinos experienced a 6% uplift in like-for-like NGR, bringing in £108.1 million, which was supported by a 1% rise in visits and a notable 5% increase in spend per visit, indicating greater customer engagement. In contrast, Mecca bingo halls maintained stable like-for-like NGR at £32.2 million, although visitor numbers fell by 3%. The decrease in foot traffic was partly due to an extended spell of hot weather in the UK, but a 3% increase in spend per visit compensated for this decline.
Rank’s Spanish subsidiary, Enracha, reported a 7% increase in like-for-like NGR, totaling £10.9 million, driven by an 11% boost in electronic gaming revenue, reflecting its growing operations in Spain.
However, the company announced the closure of three venues in Swansea, Reading Central, and Sunderland, which were considered “no longer economically viable in the medium term.” Earlier this year, Rank projected underlying operating profit for the fiscal year ending June 2026 would reach at least £76 million, further emphasizing a 6% year-on-year rise in like-for-like NGR to approximately £834.1 million for the 12-month period. This upward trend was consistent into the fourth quarter, where like-for-like NGR was recorded at £208.9 million, also a 6% increase from the previous year.
Rank Group is set to release its interim financial results for the six months ending December 31, 2026, on January 28, 2027.
