14th Aug 2025 13:29
(Alliance News) - Rank Group PLC on Thursday said it was well set to meet market expectations as it reported sharp increases in annual profit and revenue.
Despite this shares in the Maidenhead, England-based casino operator fell 4.3% to 139.49 pence each in London on Thursday afternoon.
Pretax profit ballooned to GBP53.9 million in the 12 months to June from GBP15.5 million a year prior, while net gaming revenue increased 8.3% to GBP795.4 million from GBP734.7 million, or by 11% on a like-for-like basis.
Rank said average NGR per week in Grosvenor casinos was GBP7.3 million, up 16% from GBP6.3 million in the prior year.
Digital LFL revenue growth of 10% was in line with the expected 8% to 12% compound annual growth rate over the medium term, the firm added.
Basic earnings per share shot up to 9.5p from 2.7p while the dividend was more than trebled to 2.60p per share from 0.85p. This included a final payout of 1.95p per share.
Net free cash flow of GBP27.7 million was flat year-on-year, with increased profits offset by a step-up in capital investment.
Looking ahead, Rank Chief Executive John O'Reilly said the business has made a good start to the new financial year with group NGR up 9% for the first six weeks, adding "we are well placed to meet current expectations in 2025/26."
"With the long-awaited legislative reforms for casinos now delivered, the group is at an exciting inflection point," he added.
Casino reforms passed into law in July will see gaming machine numbers across Rank's 50 Grosvenor venues increase by around 850 in 2025 to 2026, beyond the existing estate of 1,367 gaming machines. Sports betting will be introduced in 38 venues, Rank added.
"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," the CEO added.
By Jeremy Cutler, Alliance News reporter
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