Rank Group Reports 9% Q1 Revenue Growth Amid Tax Speculation

The big swing factor is product mix. Electronic table gaming revenues rose 11% following terminal upgrades, and gaming machine revenues climbed 12% as the rollout of additional B1 machines began in late August. So far, 471 machines have been installed across 18 casinos, in line with plan.

There is also a site-specific kicker: the £15.0m refurbishment of the Victoria Casino on Edgware Road completed in July and has driven a “significant step up” in performance. Table gaming revenues were up 3%, suggesting the machine estate and electronic upgrades are doing the heavy lifting for now.

Mecca venues: spend per visit offsets small drop in footfall

Mecca venues posted +5% like-for-like NGR. The mix is familiar: visits were down 1%, but spend per visit rose 6%. That is a sensible trade while customer behaviour normalises, but sustained growth will eventually want both metrics trending higher together.

Enracha venues: steady progress in Spain

Enracha – Rank’s Spanish venues – continued to tick along at +5% like-for-like NGR. It is notable that venue performance in Spain is positive while Spanish digital dipped modestly due to platform constraints. With those issues being addressed, the Spanish portfolio could see a neater alignment between channels in Q2.

Costs, taxes and what the Budget could mean

Management says it remains confident of delivering Group like-for-like operating profit in line with expectations, despite meaningful cost inflation from employer national insurance contributions, the national living wage, and the new statutory levy.

There is also a cloud of uncertainty: speculation about tax changes in the upcoming Budget. Rank is engaging with the Treasury and makes the point that the Group generated £44.6m profit after tax last year and paid £188.0m in taxes to HMRC and local authorities. Any tax increase that directly hits gaming venues could pressure margins and investment – a material risk to monitor for UK-focused operators like Rank.

Why this update matters for shareholders

• Broad-based growth: Digital +13% and venues +7% is a good mix, showing the omnichannel strategy is working.
• Product ROI showing up: Electronic table gaming +11% and machine revenues +12% point to tangible returns from terminal upgrades and the B1 rollout.
• Operational execution: 471 machines installed across 18 casinos since late August, with a plan to reach 850 incremental machines by the end of H1 2025/26. The rollout pace looks on track.
• Regional resilience: Outside London +10% helps offset seasonality in the capital, while a refurbished flagship at the Victoria Casino is pulling its weight.
• Known headwinds: Wage and levy costs are rising, and Budget-related tax risk could bite. Management confidence is encouraging, but this is a live external risk.

Positives and pressure points, plainly

What’s going right

• Revenue growth of 9% like-for-like to £210.2m is solid and broad-based.
• UK digital is the star – Grosvenor digital +31% is particularly strong.
• Capex is converting to revenue: upgraded terminals and B1 machines are lifting electronic and machine revenues.
• Refurbishments deliver: the £15.0m Victoria upgrade is already contributing to London growth.

What could go wrong

• Tax changes in the Budget could impact venue viability, employment and future investment – management is flagging this clearly.
• Cost inflation from employer NI, national living wage and the statutory levy will keep pressure on operating profit.
• Spanish digital needs to return to growth in Q2 as guided. Execution on the new bingo platform is key.

Key dates and what to watch next

• Grosvenor-focused Capital Markets Event on 22 October 2025 at the Victoria Casino.
• Interim results for the six months ending 31 December 2025 on 29 January 2026.
• Machine rollout progress toward 850 incremental B1 units by the end of H1 2025/26.
• Spanish digital trajectory in Q2 post-platform upgrade.
• Any clarity – positive or negative – from the upcoming Budget on gaming-related taxes.

My take: steady, investable progress with an external overhang

This is a well-executed quarter. Rank is growing across channels, product investment is paying off, and operational delivery – from refurbishments to machine rollouts – is evident in the numbers. The digital UK surge, particularly at Grosvenor, is a highlight.

The main risk is not in the P&L, but in Westminster. Rising structural costs and Budget uncertainty could constrain margins in the second half if policy turns adverse. For now, guidance is to hit like-for-like operating profit expectations, and Q1 trends support that. Keep an eye on the Budget, the Q2 Spanish digital rebound, and the pace of B1 installations – those will set the tone into the interims.