Rank Group has reported a 6% increase in NGR for H1 2025-26, as bosses forewarned the incoming tax hikes in the UK will result in a “a heavily disrupted landscape”.
NGR for the six months ending 31 December 2025 was up from £395.6m to £419.8m, while underlying profit rose 15% to £40.6m.
However, post-tax profit was down 26% to £18.5m. Rank shares are up around 3%, at the time of writing.
Digital NGR was up 8% from £114.8m to £123.7m, with average revenue per customer rising by 18% year on year (YoY).
Within the division, Mecca NGR rose 5% to £50.7m and Grosvenor was up 17% to £47.9m.
Ahead of the incoming hike in remote gaming duty from 21% to 40% in April, Rank said it had already taken “several mitigating actions” in preparation.
These cost-saving measures include “sharply cutting above the line media spend and TV sponsorships and renegotiating supplier contracts”.
More efficiencies are expected to be found in the coming months, bosses added.
Rank confirmed it would lobby the government to switch the tax to be applied to GGY instead of GGR.
During the reporting period, Mecca rolled out unified membership for all of its customers, allowing for an improved omnichannel experience, and a soft launch in Portugal took place.
Land-based NGR was up 6% to £296.1m, driven primarily by Grosvenor (£204m). Mecca NGR was up 4% to £69.8m and Spain-facing Enracha rose 6% to £22.3m.
At the start of 2025 it was announced that CEO John O’Reilly would step down from his post and be replaced in the interim by CFO Richard Harris.
Speaking on the H1 performance and his departure, O’Reilly said: “We continue to deliver improving results which demonstrate the resilience of the group and our ability to take advantage of the opportunities available to us, both online and in our venues.
“Customers recognise the investment and improvements we have been making and are responding enthusiastically. Both the underlying metrics and medium-term outlook for the business remain encouraging, and we have the building blocks in place to capitalise on the opportunities ahead of us.
“The second half of the year will bring further cost headwinds, principally in our UK digital business, which will be impacted by the UK government’s huge increase in tax rates.
“We have already executed measures to mitigate some of this impact, while continuing to prioritise customer experience, and the group will respond with agility as a heavily disrupted landscape takes shape in the UK.
“As I retire as CEO of Rank, I would like to pay tribute to my highly talented colleagues across the group for their enduring commitment to our customers which has again delivered another strong set of results.
“I am delighted that, as interim CEO, Richard Harris will now take Rank to the next stage of what I am sure is a very bright future.”
The post Rank Group H1 NGR up 6% as bosses warn of cuts ahead of UK tax hike first appeared on EGR Intel.
Management note reductions in above the line media spend have already been made as omnichannel operator prepares for remote gaming duty to hit 40%
The post Rank Group H1 NGR up 6% as bosses warn of cuts ahead of UK tax hike first appeared on EGR Intel.