Key points:
- Rank Group’s like-for-like (LFL) net gaming revenue (NGR) rose 13% year-on-year to £401.8m
- Underlying LFL operating profit increased 55% to £32.9m, while statutory operating profit surged 148% to £40.2m
- Digital revenue grew 14%, supported by the launch of in-house apps, while venue revenue climbed 12%, led by Grosvenor Casinos
Rank Group reported a 13% year-on-year increase in like-for-like (LFL) net gaming revenue (NGR) for the first half of the 2024/25 financial year, reaching £401.8m ($500m).
Growth was recorded across both digital and land-based operations, contributing to a 55% rise in underlying LFL operating profit to £32.9m.
Statutory operating profit more than doubled, up 148% to £40.2m, while profit before tax surged 234% to £34.7m.
The company attributed the improvement to strong trading performance and continued cost efficiencies, although net free cash flow declined sharply by 82% to £4.3m, reflecting capital expenditures and working capital movements.
Rank also announced an interim dividend of £0.65 per share, marking the company’s first shareholder payout since before the pandemic.
Strong Venue and Digital Performance
The company’s land-based venues division, which includes Grosvenor Casinos and Mecca Bingo, saw a 12% increase in LFL NGR to £281.6m.
Grosvenor Casinos contributed significantly to this growth, delivering an average weekly NGR of £7.3m, ahead of internal forecasts.
Rank now expects this to reach £8m per week in the medium term, driven by further customer experience improvements and risk management upgrades.
Rank’s digital segment also posted strong results, with LFL NGR up 14% to £120.2m. Growth was supported by the rollout of new proprietary apps for Grosvenor and Mecca, which the company expects to continue driving 8-12% compound annual growth (CAGR) in digital revenue.
Regulatory and cost pressures on the horizon
Despite a strong first half, Rank anticipates rising regulatory and operational costs in Q4 as the UK government implements new measures from the Gambling Act review. These include:
- A statutory levy on gambling operators to fund responsible gambling initiatives
- Maximum stake limits on online slots, set to be introduced in April
- Higher employment costs, as increases to National Insurance and the National Living Wage come into effect
Rank expects these factors to impact margins in Q4 but remains confident in its ability to offset pressures through revenue growth and operational efficiencies.
Strategic developments and industry positioning
Rank continued its digital transformation strategy, successfully completing the £7.5m sale of its UK non-proprietary digital brands in December. The move is expected to streamline its digital portfolio and focus on in-house platform growth.
Good to know: The company also extended £100m of its £120m bank facility for another year, ensuring it retains financial flexibility as it navigates regulatory changes
Looking ahead
Trading remained strong over the Christmas and New Year period, with revenue in January tracking in line with expectations. The company now expects full-year underlying LFL operating profit to slightly exceed current forecasts, supported by ongoing investments in venues and digital operations.
Rank is also preparing for the UK’s upcoming land-based gaming reforms, which could enhance casino operational flexibility and gaming machine limits. The company expects these changes to positively impact its financial performance in the next financial year.
Past developments
The latest results follow Rank’s recent partnership with Octoplay, announced in January 2025. The agreement saw Octoplay’s gaming portfolio integrated across Rank’s UK brands, including Mecca and Grosvenor Casinos. The deal came shortly after Rank’s expansion into Belgium’s regulated market through Casino777, reinforcing its broader European strategy.
