Rank Group (RNK) H2 2026 earnings summary

Executive summary

• Revenue and underlying profit grew across all business segments, with strong digital and gaming machine performance and all segments contributing despite headwinds.

• Strategic focus on casino-led and bingo-led gaming, leveraging core competencies and well-known brands.

• Venue segmentation led to closure of nine Mecca sites, optimizing estate quality and returns.

• Decisive actions were taken to mitigate a £46m impact from Remote Gaming Duty (RGD), including cost reductions and operational efficiencies.

• Continued investment in digital and gaming machines, with a disciplined approach to capital allocation.

Financial highlights

• Like-for-like net gaming revenue up 6% to £834m year-over-year, with growth across all businesses.

• Operating profit rose 21% to £78.6m, with operating margin increasing from 8.1% to 9.4%.

• Underlying EPS increased to 10.5p from 9.1p, and ROCE improved to 18.3% from 15.1%.

• Dividend per share increased to 3.5p from 2.6p, with a final-year dividend proposed at 2.5p per share.

• Net free cash flow was £25.5m; year-end net cash balance at £56.8m, net debt (post-IFRS 16) at £147.2m.

Outlook and guidance

• FY 2027 CapEx expected around £40m, mainly reduced in Grosvenor, improving cash generation.

• On track to deliver at least £100m operating profit in the medium term, with no material additional machines required.

• Digital profitability expected to reset in FY 2027 due to higher RGD, but mitigating actions in place.

• Strong momentum continues into new financial year: revenues up 8%, gaming machines in Grosvenor up 15%, digital up 10%.

• Dividend payout ratio is expected to grow to over 35%, with interest costs forecasted between £14.5m and £16.0m.