Q3 trading: revenue up 5% and guidance nudged to at least £68m
Rank Group has posted another quarter of steady progress. For the three months to 31 March 2026 (Q3), like-for-like net gaming revenue (NGR) rose 5% year-on-year to £205.4 million, with year-to-date NGR up 6%. Digital grew 4% and venues grew 6% on a like-for-like basis. Off the back of stronger profit conversion in the quarter, Rank now expects full-year underlying like-for-like operating profit to be at least £68 million.
That figure sits at the top end of the company-compiled analyst consensus range of £65.1 million to £68.2 million. In short, a small but meaningful upgrade.
Key numbers at a glance
| Segment | Q3 2025/26 LFL NGR (£m) | Q3 YoY | YTD 2025/26 LFL NGR (£m) | YTD YoY |
|---|---|---|---|---|
| Grosvenor venues | 95.0 | +5% | 299.0 | +6% |
| Digital | 60.9 | +4% | 184.6 | +6% |
| Mecca venues | 37.8 | +5% | 107.6 | +5% |
| Enracha venues | 11.7 | +9% | 34.0 | +7% |
| Group total | 205.4 | +5% | 625.2 | +6% |
Note: NGR is gross gaming revenue after customer incentives. Like-for-like excludes the effects of club closures, reopenings and FX. Q3 covers 1 January to 31 March.
Grosvenor casinos: machines lead the way
Grosvenor venues delivered 5% like-for-like NGR growth in Q3. Gaming machines were the star performer, up 10%, and management sees “significant room for further improvement” as it optimises recently added machines. That is a useful lever because machines tend to be more consistent and scalable than table play.
There is a note of caution. Rank flags that the Middle East conflict is likely to create ongoing uncertainty around international travel. Even so, they still expect Q4 revenue growth. The message: momentum is intact, but external factors could sway the pace.
Digital: UK steady, international accelerating, RGD mitigated
Digital NGR grew 4% like-for-like. The UK piece was up 2% while the international business accelerated to 14% growth, helped by the platform and customer proposition improvements over the last year.
A key update here is tax. Remote Gaming Duty (RGD) has risen to 40% from 1 April 2026. Rank says it has already implemented mitigations, including cuts to above-the-line marketing, supplier cost reductions and headcount changes. Crucially, performance marketing and customer incentives have been protected, which should help preserve growth while still absorbing much of the tax hit.
Mecca bingo: tax tailwind and profit target
Mecca venues posted 5% like-for-like NGR growth in Q3. Management says Mecca is on track to deliver double digit operating profit in 2026/27, and that outlook is boosted by the abolition of Bingo Duty from 1 April 2026. That is a clear structural tailwind for the division just as trading improves.
Enracha Spain: machines supercharged
Enracha continued to impress, with 9% like-for-like NGR growth in Q3. Again, gaming machines were the engine, with a punchy 27% rise. Year-to-date NGR is up 7%. This is a helpful diversifier for the Group and shows the benefits of product mix and operational improvements.
Profit outlook: top-end guidance and a medium-term marker
Rank now expects full-year underlying like-for-like operating profit to be at least £68 million. That is toward the top of the company-compiled analyst consensus range of £65.1 million to £68.2 million, reflecting “strong profit conversion” from Q3 revenue growth. The precise margin uplift is not disclosed, but the trend is encouraging.
Management is also reiterating a bigger goal: a medium-term objective to generate at least £100 million of operating profit. Today’s upgrade keeps that ambition credible, but delivery will depend on sustaining revenue growth while navigating higher UK digital taxes.
Costs and energy: volatility addressed, impact not material
Rank expects further year-on-year revenue growth in Q4. On energy, the Group highlights market volatility but says that, given current prices and its hedging policy, energy is not expected to have a material impact on profitability in 2025/26 or 2026/27. That takes a lingering concern off the table for now.
Why this update matters for investors
- Guidance edged up – The new “at least £68m” operating profit guide points to delivery at the top end of expectations, supported by good Q3 conversion.
- Balanced growth – Venues up 6% and digital up 4% show momentum across channels, with machines a standout in both Grosvenor and Enracha.
- RGD plan in motion – The 40% Remote Gaming Duty hike is material, but Rank has acted early to offset much of the impact while protecting growth-focused spend.
- Tax tailwind for bingo – Abolition of Bingo Duty from April 2026 should accelerate Mecca’s push to double digit operating profit in 2026/27.
- Energy risk contained – Hedging and current prices mean limited P&L impact expected over the next two financial years.
Risks and watch-outs
- Macro and travel uncertainty – The Middle East conflict may weigh on international travel, which could affect Grosvenor’s trajectory, even if Q4 growth is still expected.
- Digital UK growth modest – 2% UK digital growth is positive but not rapid. Execution on product, retention and marketing efficiency will matter with RGD at 40%.
- Profit mix – Strong “profit conversion” is cited, but divisional margins are not disclosed. Investors will look for more colour at results.
What to watch next
- Q4 trading – Management expects further year-on-year revenue growth.
- Cost and tax flow-through – Early signs suggest RGD mitigations are working. The full effects should be clearer in the preliminary results.
- Mecca delivery – Evidence that the Bingo Duty abolition is boosting profit in line with the 2026/27 target.
Rank will report preliminary results for the year to 30 June 2026 on 13 August 2026.
Jargon buster
- Net Gaming Revenue (NGR): Gross gaming revenue after customer incentives.
- Like-for-like (LFL): Excludes impacts of club closures, reopenings and foreign exchange.
- Remote Gaming Duty (RGD): UK tax on online gaming revenues, now 40% from 1 April 2026.
Josh’s take
This is a tidy update. Growth is broad-based, machines are doing the heavy lifting in venues, and digital is holding up despite tax headwinds. The guidance lift to at least £68 million is modest but signals improving profitability, and the energy line looks de-risked.
The job now is to keep UK digital moving while the RGD rise beds in, and to convert Mecca’s tax tailwind into the double digit profit target. If Rank keeps compounding like this, that medium-term goal of at least £100 million of operating profit looks increasingly achievable.
