Rank Group expects to grow full year underlying profit after strong Q3 performance
Rank Group has reported total revenue of £205.4 million for the fiscal third quarter ended 31 March, with growth across all business segments.
Total revenue in the third quarter of Rank’s financial year was 5 per cent ahead of the same period last year, taking total revenue in the first nine months of FY26 to £625.2 million, a rise of 6 per cent.
Rank’s Grosvenor venues segment generated revenue of £95.0 million (+5 per cent) in the three-month period ended 31 March, with gaming machines the fastest growing vertical with growth of 10 per cent. This was driven by an increase in the number of machines in operation following changes to the United Kingdom’s gaming machine density rules, which came into effect in July 2025.
Grosvenor’s revenue in the first nine months of the financial year was 6 per cent higher year-on-year at £299.0 million.
The company’s Digital segment had quarterly revenue of £60.9 million (+4 per cent), taking its nine-month revenue to £184.6 million (+6 per cent). The third quarter performance included international growth of 14 per cent. Third quarter revenue growth was 2 per cent in the United Kingdom, where mitigation measures have been introduced to offset “much of the impact” of the increase in Remote Gaming Duty (RGD) to 40 per cent from 1 April 2026.
Rank expects the measures to deliver “significant savings” in above the line marketing spend and supplier costs, as well as headcount reductions. The company added that performance marketing spend and customer incentives have been protected.
Mecca venues grew revenue by 5 per cent to £37.8 million in Q3 FY26, with revenue in 9M rising by the same percentage to £107.6 million.
The Mecca business is expected to achieve double-digit operating profit growth in FY26, boosted by the abolition of Bingo Duty in the UK at the start of this month.
Rank’s Enracha venues business in Spain delivered 9 per cent revenue growth in the fiscal third quarter to £11.7 million, driven by a 27 per cent increase in gaming machines revenue. Revenue in the first nine months of FY26 was up 7 per cent to £34.0 million.
Across all business segments, retail net gaming revenue (NGR) increased by 6 per cent in the fiscal third quarter, with digital NGR 4 per cent higher year-on-year.
The company said in a trading update Wednesday that the strong profit conversion from revenue growth in Q3 is expected to deliver full year underlying like-for-like operating profit of at least £68 million.
Richard Harris, interim chief executive of Rank Group, commented: “It was pleasing to see continued revenue growth across all businesses and strong profit conversion in Q3, despite a tough macroeconomic backdrop. The results demonstrate the resilience of the business, the strength of the customer proposition and the growth initiatives we have in place.
“Having implemented the actions required to mitigate much of the impact of higher RGD in our UK digital business, and with 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.”
Rank expects to deliver further year-on-year revenue growth in the fourth quarter of FY26 and full year underlying operating profit of at least £68 million, taking into account energy cost volatility, which is currently not expected to have a material impact on profitability in FY26 or FY27.
Rank Group will report its preliminary results for FY26 on 13 August.
Shares in Rank Group plc. (LSE:RNK) were trading 7.30 per cent higher at 97.00 pence per share in London early Wednesday morning.