The Rank Group (LON:RNK) Releases Quarterly Earnings Results

Key Points

• FY2026 results were strong: Like-for-like net gaming revenue rose 6% to £834 million, operating profit increased 21% to £78.6 million, and the proposed dividend grew 35% to 3.5p per share.
• Trading momentum continued into FY2027: Revenue increased 8% in the first six weeks, led by growth in Grosvenor gaming machines and digital revenue. Management sees potential for Grosvenor to support at least £100 million in medium-term operating profit.
• Higher digital taxes pose a headwind: The 40% Remote Gaming Duty is expected to cut FY2027 digital profitability by roughly £15 million, prompting management to warn that profitability will “reset” in the year ahead.

The Rank Group (LON:RNK - Get Free Report) posted its quarterly earnings data on Thursday. The company reported GBX 10.50 earnings per share for the quarter, Digital Look Earnings reports. The Rank Group had a return on equity of 9.03% and a net margin of 4.20%.

Here are the key takeaways from The Rank Group's conference call:

• Strong FY2026 performance: Like-for-like net gaming revenue increased 6% to £834 million, while operating profit rose 21% to £78.6 million; the proposed full-year dividend increased 35% to 3.5p per share.
• Current trading has remained robust, with revenue up 8% in the first six weeks of FY2027, including 15% growth in Grosvenor gaming machines and 10% growth in digital revenue.
• The 40% Remote Gaming Duty is expected to reduce FY2027 digital profitability by about £15 million despite mitigation, while management warned that profitability will “reset” in the year ahead.
• Grosvenor’s expanded gaming-machine estate is showing improving momentum, and management believes additional machines, smaller electronic-led casinos and stronger machine productivity can support the path toward at least £100 million of medium-term operating profit.
• Rank closed nine Mecca venues after an estate review, leaving roughly 40 venues viewed as appropriate under the current tax regime; FY2027 capital expenditure is expected to fall to around £40 million, improving underlying cash generation but limiting near-term investment.

The Rank Group Stock Performance

RNK stock traded up GBX 6 during midday trading on Thursday, reaching GBX 105.80. 2,148,044 shares of the company were exchanged, compared to its average volume of 824,811. The company has a debt-to-equity ratio of 61.99, a current ratio of 0.45 and a quick ratio of 0.65. The business has a 50-day moving average price of GBX 97.92 and a two-hundred day moving average price of GBX 95.63. The Rank Group has a one year low of GBX 86 and a one year high of GBX 151.80. The firm has a market capitalization of £495.60 million, a price-to-earnings ratio of 12.90, a price-to-earnings-growth ratio of 1.75 and a beta of 1.58.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Peel Hunt reiterated a "buy" rating and issued a GBX 175 price objective on shares of The Rank Group in a report on Monday, July 13th. Shore Capital Group reaffirmed a "house stock" rating on shares of The Rank Group in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft raised shares of The Rank Group to a "hold" rating and set a GBX 106 price target on the stock in a research report on Thursday, April 16th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, The Rank Group currently has an average rating of "Moderate Buy" and an average price target of GBX 140.50.

The Rank Group Company Profile

The Rank Group Plc has been entertaining Britain since 1937, from its origins in motion pictures to today's gaming based entertainment brands. Over the course of more than three-quarters of a century, the Group has entertained many millions of customers in Britain and around the world. The Group's story is one of iconic brands and talented people with a mission to entertain.

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