Rank Group (RNK) H2 2024 earnings summary

Executive summary

• Achieved 9% year-over-year growth in like-for-like net gaming revenue (NGR), with digital up 12% and venues up 8%, driving strong profitability and operating profit of GBP 46.5 million.

• Underlying operating profit more than doubled to GBP 46.5 million, with strong H2 momentum and all business units contributing.

• Net free cash flow improved to GBP 27.6 million, and net cash (pre IFRS 16) reached GBP 20.9 million, supporting dividend reinstatement.

• Strategic transformation and technology investments, especially in Digital, are driving growth and operational improvements.

• Dividend reinstated at GBP 0.085 per share, reflecting improved financial position.

Financial highlights

• Like-for-like NGR: GBP 734.4 million, up 9% year-over-year.

• Underlying EPS: GBP 0.059 per share, up from GBP 0.011 last year.

• Underlying profit before tax was GBP 33.5 million, up from GBP 6.2 million.

• Net free cash flow: GBP 27.6 million, up from an outflow last year.

• Net assets increased to GBP 339.0 million from GBP 325.6 million.

Outlook and guidance

• Digital NGR CAGR targeted at 8–12% in the medium term, with margin expansion of at least 600 basis points versus FY 2023.

• CapEx planned at around GBP 60 million for the year ahead, focused on venue upgrades and digital platform development.

• Wage inflation remains a headwind, with employment costs expected to rise around 7%.

• Forecast to be broadly cash flow neutral in the coming year, with improved cash generation from FY 2026.

• NGR grew 10% in the first six weeks of FY 2024/25, maintaining strong momentum.