Rank Group (RNK) H2 2026 earnings summary

Executive summary

• FY 2026 revenue and profit grew across segments; underlying operating profit rose 21% to £78.6m.

• Strategy focuses on casino-led and bingo-led gaming, combining venue segmentation, productivity improvements and selective investment.

• Cost reductions and operational efficiencies mitigated a £46m RGD impact.

Financial highlights

• Like-for-like NGR reached £834.1m, up 5%; EBITDA was £138.3m and underlying operating profit was £78.6m, up 21%.

• Underlying operating margin increased to 9.4% from 8.1%; underlying EPS rose to 10.5p from 9.1p, and ROCE to 18.3% from 15.1%.

• Higher RGD reduced profit by £10.1m; lower marketing, staff and supplier costs saved £8.1m.

• Dividend per share increased to 3.5p from 2.6p; the FY 2026 payout ratio was 33%.

• Net free cash flow was £25.5m; closing cash pre-IFRS 16 was £56.8m.

Outlook and guidance

• First six weeks of FY 2027: NGR up 8%, Grosvenor gaming machine revenue up 15% and digital revenue up 10%.

• FY 2027 CapEx planned at ~£40m; lower investment is expected to support cash generation.

• FY 2027 digital profitability is expected to fall ~£15m as mitigations offset ~£20m of £35m additional RGD cost.

• Medium-term operating profit ambition remains at least £100m; no material increase in Grosvenor machines is required to reach it.

• Dividend payout ratio expected to exceed 35%; forecast interest costs are £14.5m–£16.0m and underlying effective tax rate 22%–24%.