Rank Group announced a 5% rise in like-for-like Net Gaming Revenue (NGR) for 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 characterized this quarter as "a strong start to the new financial year," driven by steady revenue growth across various channels despite challenging market conditions. Provided there are no changes to the current UK industry tax structure, Rank anticipates group operating profits will align with market expectations for the full year.
In the trading update, chief executive Richard Harris expressed concern over a potential doubling of the UK’s Machine Games Duty (MGD), which could be proposed in the government’s upcoming autumn budget. He warned that increased MGD rates could lead to heightened operating costs and reduced venue viability, possibly resulting in venue closures and job losses. This, Harris stated, would also diminish 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," he emphasized.
Moreover, he pointed out that last year HM Treasury acknowledged these economic considerations, suggesting that if policy conditions remain favorable, casinos and bingo clubs could significantly contribute to the government’s economic growth agenda.
In a recent analysis, Deutsche Bank identified Rank as particularly vulnerable should an MGD increase be implemented. The investment bank projected that a higher duty would cost approximately £35 million annually, affecting around 44% of the company's forecasted EBIT for 2028 and about 17% of EBITDA in the short term, despite partial mitigation. As a result, their rating for Rank has been downgraded from "buy" to "hold."
Rank's digital segment reported a 6% growth in like-for-like NGR, totaling £64.9 million, largely due to the UK digital segment expansion of 6%, particularly from Mecca’s online brand. International digital NGR similarly increased by 4%, indicating positive performance in overseas markets.
Grosvenor Casinos achieved a 6% increase in like-for-like NGR, reaching £108.1 million, supported by a 1% uptick in visits and a 5% rise in customer spend per visit, showing enhanced engagement. In contrast, Mecca bingo halls maintained stable like-for-like NGR of £32.2 million despite a 3% decline in visitors, partly due to an unusually hot spell across the UK; however, increased spending per visit offset the dip in numbers.
Rank's Spanish venue subsidiary, Enracha, reported a 7% rise in like-for-like NGR to £10.9 million, primarily driven by an 11% jump in electronic gaming revenue, showcasing its growing presence in Spain.
The quarter highlighted significant revenue growth from gaming machines, rising by 14%, while table gaming and electronic gaming showed moderate increases of 3% and 5%, respectively. Rank Group is confident in optimizing its machine estate for further revenue gains.
On the downside, the company announced the closure of three venues in Swansea, Reading Central, and Sunderland, citing these locations as "no longer economically viable in the medium term."
Earlier in the year, Rank projected its underlying operating profit for the fiscal year ending June 2026 would be at least £76 million. The company also reported a 6% year-on-year increase in like-for-like NGR, totaling around £834.1 million for the 12-month period, with fourth-quarter results reflecting a similar 6% increase year-on-year, amounting to £208.9 million.
Rank Group plans to release its interim financial results for the six months ending December 31, 2026, on January 28, 2027.
