Rank Group has reported a 9% year-on-year increase in revenue for the first quarter of its 2025-26 financial year, helped by further growth within its digital business.
For the three months to 30 September, net gaming revenue at Rank topped £210.2 million ($280.9 million). This, the group said, surpassed the £197.5 million reported in the same period in the previous year.
While Rank reported growth across all four of its core business segments, the highest rise came in digital. Here, like-for-like revenue climbed 13% year-on-year to reach £61.6 million in Q1.
Rank noted a 31% spike in Grosvenor digital revenue as well as a 9% rise within its Mecca online segment. In Spain, however, net gaming revenue fell 1% due to previously reported platform capacity issues. Rank said such issues are being addressed, with the launch of a new bingo platform set to see the segment return to growth in Q2.
Rank sees Grosvenor venues revenue exceed £100 million
Turning to land-based operations, net gaming revenue from the Grosvenor venues business was up 8% to £102.7 million. Again, this segment drew the most revenue for the group.
Growth here was helped by a 5% increase in customer visits and a 3% increase in spend per visit. Outside London, Rank said Grosvenor’s performance grew 10%, whereas in the British capital growth was noted at 4%.
The group said a relatively quieter summer in London was offset by an improved performance of Victoria Casino. This followed a major refurbishment that was completed in July.
Breaking down this segment further, electronic table gaming revenues grew 11%, which the group said represented “return on investment” from recent upgrades to terminals. Table games revenue edged up 3% and gaming machine revenue climbed 12% following the rollout of additional B1 gaming machines across the estate.
This latter point followed a pledge from Rank to take advantage of new land-based rules in the UK implemented in August. These included allowing casinos to instal more gaming machines and potentially offer in-house sports betting. Rank said in August it was exploring plans to launch sports betting at its UK casinos.
Elsewhere, revenue from Mecca venues grew 5% despite a 1% decline in overall customer visits. Spend per customer, however, was 6% higher year-on-year. Finally, Enracha venues in Spain reported a 5% increase in revenue for the quarter.
Rank paying ‘fair share’ of tax
Chief Executive John O’Reilly spoke positively about the Q1 performance. He said the figures place the group on track to hit its full-year targets.
“We have started the year strongly,” O’Reilly said. “We’re confident of delivering group like-for-like operating profit in line with expectations, notwithstanding the significant cost increases we have incurred in employer national insurance contributions, the national living wage and the new statutory levy.
“We are pleased to be rolling out additional gaming machines in our Grosvenor venues. We’re on track with our installation programme and now expect a total of 850 incremental machines to be added to our estate before the end of H1 2025-26.”
O’Reilly also addressed ongoing speculation regarding tax changes in the upcoming budget in November. Reports suggest the government is likely to increase gambling tax in the UK. The main change could be a switch to a single rate for all remote gambling.
Speaking in August after Rank published its full-year results, O’Reilly urged the government to tread carefully in terms of implementing changes to tax. Now, he said the group is paying its fair share of tax already, given its strong UK focus.
“Speculation regarding tax changes in the upcoming budget is, inevitably, hanging over the business,” O’Reilly said. “We are engaged with the treasury on the implications of tax changes on the viability of our venues, employment levels, future investment and the customer.
“Last year the group generated £44.6 million in profit after tax, having paid HMRC and local authorities £188.0 million in taxes. Rank Group, with its strong UK focus, is certainly paying its fair share.”
Net gaming revenue at Rank topped £210.2 million in Q1 of 2025-26.