Grosvenor casinos and digital operations drive Rank Group FY25 revenue growth

The Rank Group is aligning its expansion strategy with recent UK gambling reforms, planning to add about 850 gaming machines and introduce sports betting to 38 Grosvenor venues in FY2026, even as new statutory levies and stake limits are expected to impact its digital profitability by an estimated £4 million a year.

For the 12-month period ended June 30, 2025, like-for-like net gaming revenue (NGR) rose 11% to £795.3 million ($1.07 billion), with growth across all divisions. Grosvenor Casinos increased 14% to £378.4 million, digital operations rose 10% to £235.7 million, Mecca venues gained 5% to £140.3 million, and Spanish-facing Enracha venues were up 9% to £40.9 million.

Statutory operating profit more than doubled to £67.0 million, and underlying operating profit rose 38% to £63.7 million, with margins up from 6.5% to 8.0%. Profit after tax increased to £44.6 million from £12.0 million in FY2024. Net cash (pre-IFRS 16) stood at £45.4 million, more than twice the prior year. The board recommended a final dividend of 1.95p per share, bringing the total annual dividend to 2.60p.

From April 2025, the statutory levy for research, prevention, and treatment of problem gambling in the UK increased from 0.1% to 1.1%. New maximum stake limits for online slots were also introduced: £5 per spin for adults and £2 for players under 25. Rank reported these changes reduced Q4 digital profit by about £1 million, with an expected full-year impact of £4 million.

UK digital revenue grew 12% to £208.8 million, driven by Grosvenor online (up 22%) and Mecca online (up 11%), although other brands on Rank’s proprietary platform declined 5%. Average revenue per customer rose 18%. In Spain, digital performance was flat due to platform capacity issues affecting YoBingo. The company has secured platform certification in Portugal, with a license expected soon.

In Grosvenor’s UK venues, London revenue rose 9% to £117.5 million, while other UK locations grew 17% to £260.9 million. Visitor numbers increased 3%, and spend per visit rose 11%. Mecca visitor numbers were flat, but spend per visit was up 5%, and gaming machine revenue increased 9%, now representing 41% of Mecca NGR. Enracha venues recorded a 3% increase in visitors and 6% rise in spend per visit, supported by targeted refurbishments.

Under the new UK casino rules, small casinos can now operate five machines per gaming table, up from two, with a maximum of 80 per venue. Rank plans to expand its machine base from 1,367 B1 units by about 850 in 50 Grosvenor venues during FY2026 and longer term by 882 units over two to three years. Sports betting will be added in 38 locations. Discussions are ongoing with Scottish authorities for similar changes.

Chief Executive John O’Reilly said: “We have had another successful year, delivering revenue growth and profit ahead of our expectations. Both online and in our venues, the customer reaction to the investments we are making has been excellent.”

On proposed tax reforms, O’Reilly said any increase could make some operations unprofitable, noting Rank paid about £189 million in taxes in FY2025.