Rank Group Shares Surge as Upgraded Profit Outlook Tops Expectations

Rank Group Plc (LSE:RNK) lifted its full-year underlying operating profit guidance to at least £68 million, exceeding the top end of analyst expectations and sending shares up more than 8%. The upgrade follows continued like-for-like growth in net gaming revenue (NGR) across all divisions during the third quarter.

The revised outlook surpasses the upper range of analyst forecasts, which had been between £65.1 million and £68.2 million for the 2025–26 financial year. Group like-for-like NGR rose 5% year-on-year to £205.4 million in the third quarter, while year-to-date NGR increased 6% compared with the prior year.

Interim chief executive Richard Harris said the performance highlights “the resilience of the business” and added that, with measures in place to offset higher Remote Gaming Duty and “clear plans in place to drive sustainable revenue growth, the Group is well placed to deliver the medium-term objective of generating at least £100m operating profit.”

Within the divisions, Grosvenor venues—Rank’s largest segment—reported Q3 like-for-like NGR of £95 million, up 5%, with gaming machines delivering the strongest growth at 10%. The company noted some potential uncertainty linked to international travel but still expects continued growth in that segment.

Digital operations also performed positively, with like-for-like NGR rising 4% to £60.9 million. The UK digital business grew 2%, while international digital operations expanded by 14%. Rank has implemented cost-saving measures, including reductions in marketing spend, supplier costs, and headcount, to help offset the impact of Remote Gaming Duty increasing to 40% from April 1, 2026.

Mecca venues generated Q3 like-for-like NGR of £37.8 million, up 5%, and are expected to deliver profit growth in 2026–27, supported by the removal of Bingo Duty from April 2026. Meanwhile, Enracha, the group’s Spanish venues division, was the fastest-growing segment, with Q3 NGR up 9% to £11.7 million, driven by a 27% increase in gaming machine revenue. Year-to-date growth for Enracha stands at 7%.

Looking ahead, Rank expects further year-on-year revenue growth in the fourth quarter. The group also noted that energy price volatility is unlikely to have a material impact on profitability, supported by its hedging strategy.