Rank Group Q1 revenue rises 5% as MGD hike concerns loom
Rank Group has reported a 5% increase in like-for-like net gaming revenue to £216.1m for the first quarter of its financial year, driven by strong growth in its Grosvenor Casinos and digital divisions. However, the company's full-year guidance is conditional on the UK tax structure remaining unchanged.
- Like-for-like group Net Gaming Revenue (NGR) increased 5% year-on-year to £216.1m for the three months ending 30 September 2026.
- Grosvenor Casinos and the digital division both delivered 6% NGR growth, while Mecca bingo venues remained flat.
- The positive outlook is contingent on no changes to UK gambling taxes, with analysts highlighting significant financial risk from a potential Machine Games Duty (MGD) increase.
Rank Group has announced a 5 per cent year-on-year rise in like-for-like net gaming revenue (NGR) for the first quarter of its 2026/27 financial year. For the three months ending 30 September 2026, NGR reached £216.1m. The company described the performance in a trading update as "a strong start to the new financial year".
The operator’s Grosvenor Casinos division was a key driver of growth, posting a 6 per cent like-for-like NGR increase to £108.1m. This performance was supported by a 1 per cent rise in customer visits combined with a 5 per cent increase in average spend per visit. Within the casino segment, revenue from gaming machines saw the largest growth at 14 per cent, while electronic gaming and table gaming revenues rose by 5 per cent and 3 per cent respectively.
Rank’s digital operations also delivered a strong performance, with like-for-like NGR climbing 6 per cent to £64.9m. Growth was consistent across its UK business, which expanded by 6 per cent, led by a 7 per cent revenue increase from the Mecca online brand. The group’s international digital segment saw NGR grow by 4 per cent.
Mixed venue performance and tax uncertainty
In contrast, the land-based Mecca bingo business reported flat like-for-like NGR of £32.2m. The company noted that a 3 per cent decline in visitor numbers, partly attributed to a prolonged period of hot weather in the UK, was offset by a 3 per cent rise in spend per visit. Meanwhile, Rank’s Spanish venues subsidiary, Enracha, recorded a 7 per cent NGR increase to £10.9m, largely driven by an 11 per cent surge in electronic gaming revenue.
Despite the positive start, Rank’s full-year outlook remains conditional. The group stated it expects to deliver operating profit in line with market expectations, provided the current UK industry tax structure is not altered. This follows a recent Deutsche Bank analysis which highlighted Rank as being particularly exposed to any potential increase in Machine Games Duty (MGD).
The bank’s analysis estimated that an MGD hike could cost Rank approximately £35m per year. This figure would represent around 44 per cent of the company’s forecasted 2028 EBIT and about 17 per cent of its near-term EBITDA, even after mitigation efforts. Deutsche Bank reiterated its 'hold' rating for Rank’s stock, having downgraded it from 'buy' in January of this year.
During the quarter, Rank made the strategic decision to close three venues in Swansea, Reading Central, and Sunderland. The company stated these locations were deemed "no longer economically viable in the medium term". Rank previously announced it expects to report an underlying operating profit of at least £76m for the full year ending June 2026. The group will release its interim results for the six months ending 31 December 2026 on 28 January 2027.
