The Rank Group delivered a year of substantial revenue and profit growth for the 12 months ending 30 June 2025, with all parts of its business performing ahead of expectations. Looking forward, the operator expects new UK gambling reforms to further strengthen its position in the coming year.
Rank’s total reported net gaming revenue (NGR) for FY25 reached £795.4 million, up 8% from the previous year, while underlying like-for-like NGR climbed 11% to £795.3 million. Growth was consistent across the group’s four core segments, with both operating and net profit showing sharp increases despite higher costs.
Grosvenor Drives Venue Growth
Venues remained Rank’s biggest revenue driver, generating £559.6 million, up 11% year-on-year. Grosvenor casinos led the charge with £378.4 million in revenue — a 14% rise — supported by targeted investment, improved product offerings, and enhancements to customer experience.
London venues brought in £117.5 million, up 9%, while locations across the rest of the UK delivered £260.9 million, a 17% increase. Visitor numbers rose 3%, and average spend per visit was up 11%.
“Revenue growth is the result of the significant and targeted investments that we have made in our venues, an improved product offering, improvements to customer risk management and our people and culture,” Rank said in its report (pdf). The company expects further benefits from recent Gambling Act reforms, which include higher machine allocations and the introduction of sports betting in casinos.
Mecca bingo venues also grew revenue by 5% to £140.3 million, with flat attendance but a 5% increase in spend per visit. Gaming machine revenues at Mecca rose 9%, now representing 41% of the division’s NGR. In Spain, the Enracha brand posted a 9% like-for-like revenue increase to £40.9 million, boosted by machine upgrades and refurbishment projects.
Digital Performance and Regulatory Pressures
Rank’s digital arm achieved £235.7 million in revenue, up 10%, with average revenue per customer jumping 18%. UK online revenue rose 12% to £208.8 million, driven by strong performances from Grosvenor Digital (up 22%) and Mecca Digital (up 11%).
However, new UK regulations introduced in April 2025 affected profitability. These included a statutory gambling levy of 1.1% and maximum stake limits of £5 for online slots (£2 for under-25s). “The impact on digital profitability in the final quarter of the year (April to June 2025) has been around £1 million,” Rank stated, estimating the annual effect at around £4 million.
Outside the UK, digital performance in Spain was flat due to platform capacity issues, while Rank’s Portuguese launch has been delayed, though licensing is expected soon. CEO John O’Reilly noted, “Our online business is tracking to the expected 8%-12% revenue growth rate as we drive the benefits of our proprietary technology and develop seamless cross-channel experiences for customers.”
Profit Surge and Strong Cash Position
Statutory operating profit more than doubled to £67.0 million, while underlying operating profit climbed 38% to £63.7 million. Profit before tax hit £53.9 million, up 248%, and net profit reached £44.6 million. Basic earnings per share rose to 9.5p, and the board recommended a final dividend of 1.95p, taking the full-year total to 2.60p.
Return on capital employed improved to 14.5%, from 10.3% a year earlier. Net debt closed at £130.8 million, with net free cash flow at £27.7 million and net cash pre-IFRS 16 at £45.4 million.
“We are growing profitability and have a strong net cash position,” O’Reilly said. “This will enable both continued investment and progressive dividend returns for our shareholders.”
UK Reforms to Expand Machines and Add Sports Betting
From July 2025, reforms to the UK’s land-based gambling rules allow Rank to add around 850 gaming machines to its Grosvenor estate of 50 venues, on top of its existing 1,367 B1 machines. Sports betting will also be introduced in 38 venues, a first for the company.
“With the long-awaited legislative reforms for casinos now delivered, the group is at an exciting inflection point,” O’Reilly remarked. “The Grosvenor business will benefit from the higher gaming machine allocations and the introduction of sports betting, which will better meet existing customer needs and increase the attractiveness of casinos to a broader base of consumers.”
Caution Over Potential Tax Hikes
O’Reilly used the FY25 results announcement to warn against potential UK gambling tax increases. The Treasury is considering replacing the current three-rate remote gambling system with a single Remote Betting & Gaming Duty, while some think tanks have proposed hiking remote gaming duty to 50%.
“I don’t moan about the tax we pay as this is the type of business we are in,” O’Reilly said, noting Rank paid £189 million in taxes during FY25 — about £4 of every £5 it generated. “Any increase has the potential to move a business from being profitable to not profitable. As such, businesses will go and competition in the market will decrease, which is not good for the consumer.”
