Rank Group wrapped up its fiscal year ending June 30, 2025, with impressive gains across its operations, posting an 11% jump in like-for-like net gaming revenue to £795.3 million. Grosvenor Casinos and the company’s digital arm led the way, offsetting regulatory headwinds like higher levies and stake caps. This performance not only topped expectations but also highlighted Rank’s adaptability in a UK market grappling with reforms, setting the stage for machine expansions and sports betting rollouts in the coming year.
Grosvenor Casinos Spearhead Revenue Climb
Grosvenor Casinos powered Rank’s growth. The segment’s net gaming revenue climbed 14% to £378.4 million. London sites contributed £117.5 million, up 9%, while venues outside the capital surged 17% to £260.9 million. Visitors increased 3%, and spend per visit rose 11%, reflecting sharper marketing and venue upgrades that drew crowds back post-pandemic.
Rank operates 50 Grosvenor venues. With 1,367 high-stake B1 gaming machines in place, these units form a core revenue driver. Industry data shows UK casinos average around £50,000 to £80,000 per machine annually, based on total gross gaming yield of £15.12 billion across 184,126 machines nationwide. For Grosvenor, machines likely account for 40-50% of revenue, pushing segment totals higher through table games and hospitality. This 14% growth outpaces the UK gambling market’s projected 5.4% CAGR from 2025 to 2029. Rank’s focus on premium experiences—think revamped interiors and targeted events—explains the edge over competitors stuck in outdated models.
Digital Operations Hold Firm Despite New Rules
Digital channels grew 10% to £235.7 million in net gaming revenue. UK digital led with a 12% increase to £208.8 million, thanks to Grosvenor online’s 22% leap and Mecca online’s 11% rise. Average revenue per customer jumped 18%, signaling better engagement through app enhancements and personalized offers. Spain’s digital stayed flat at £26.9 million due to platform glitches at YoBingo, but Portugal’s upcoming license promises fresh markets.
New UK regulations bit hard. The statutory levy rose from 0.1% to 1.1% in April 2025, and online slot stakes capped at £5 for adults and £2 for under-25s. These changes shaved £1 million off fourth-quarter digital profits, with a £4 million annual hit expected. Yet Rank’s 10% growth mirrors global online gambling’s 10.4% projected rise from $117.5 billion in 2025 to higher figures by 2029. Competitors like Entain reported similar pressures, but Rank’s proprietary platform kept costs down, boosting margins. Digital now makes up 30% of total revenue, up from 28% in FY24, showing a shift toward online that aligns with 80% of gamblers using mobiles globally.
Mecca and Enracha Venues Show Steady Progress
Mecca Bingo halls posted a 5% gain to £140.3 million. Visitor numbers held steady, but spend per visit climbed 5%, and gaming machines—now 41% of Mecca’s revenue—grew 9%. This underscores machines’ rising role in bingo settings, where casual players favor quick-play options over traditional games.
Enracha, Rank’s Spanish arm, advanced 9% to £40.9 million. Visitors rose 3%, spend per visit increased 6%, and targeted refurbishments in key sites paid off. Enracha’s smaller scale—nine venues—offers stability amid UK volatility, contributing 5% to group revenue but with lower overheads.
Comparing segments, Grosvenor and digital drove 80% of the group’s 11% overall growth. Mecca and Enracha added ballast, preventing dips seen in FY23 when total revenue sat at £681.9 million. This diversification shields Rank from single-market risks, unlike pure-play operators.
Profits Soar and Balance Sheet Strengthens
Underlying operating profit leaped 38% to £63.7 million, with margins expanding from 6.5% to 8.0%. Statutory operating profit more than doubled to £67.0 million. Profit after tax reached £44.6 million, up from £12.0 million in FY24. Net cash before IFRS 16 doubled to £45.4 million, providing firepower for investments.
Taxes totaled £189 million, underscoring Rank’s hefty contributions—about 24% of revenue. The board approved a 1.95p final dividend, totaling 2.60p annually, rewarding shareholders amid uncertainty over potential tax hikes that CEO John O’Reilly warned could render some sites unviable.
Historically, Rank’s revenue grew from £681.9 million in FY23 to £734.7 million in FY24, then accelerated to £795.3 million in FY25. Profit trends follow: underlying operating profit rose from £8.6 million in FY23 to £29.4 million in FY24, then £63.7 million now. This trajectory reflects recovery from COVID lows, with FY25 marking the strongest year since 2019’s £801 million peak.
Expansion Tactics Poised to Unlock More Value
Rank eyes big moves under relaxed UK casino rules. Small venues can now run five machines per table, up from two, capping at 80 per site. Plans call for 850 new machines across 50 Grosvenor locations in FY26, plus 882 more over two to three years. Sports betting debuts in 38 spots.
Estimating impact, if each machine generates £60,000 annually—aligning with industry averages from £15.12 billion GGY across 184,126 units—the 850 additions could add £51 million in revenue. Factor in sports betting’s 15-20% margins, and FY26 growth could hit 12-15%, outstripping the UK’s 2.87% market CAGR to 2029. Scotland talks may extend these perks, amplifying upside.
O’Reilly noted, “We delivered revenue growth and profit ahead of expectations. Customer response to our investments shines through online and in venues.” This optimism holds, but regulatory risks linger—higher taxes could squeeze margins by 1-2 points.
Outperforming Peers in a Maturing Market
Rank’s 11% revenue growth trumps the UK sector’s 5.4% forecast. The broader GB market hit £15.6 billion in 2023-24, with online driving half. Globally, gambling reaches $449.67 billion in 2025, online at $117.5 billion. Rank captures 5% of UK share, punching above weight against giants like Flutter.
Challenges persist. Stake limits curb digital upside, and levy hikes add £4 million costs. Yet Rank’s cash pile and expansions position it well. Peers like Entain saw 8% growth last year; Rank’s 11% signals efficiency. If machine rollouts succeed, revenue could top £900 million by FY27, assuming 10% annual gains.
Rank’s FY25 story boils down to smart execution. Casinos and digital delivered, venues stabilized, and profits ballooned. With expansions ahead, the company stands ready to capitalize on a market favoring innovators. Investors should watch regulatory twists, but these results affirm Rank’s resilience.
