- Full year exceeds expectations
- New gambling rules from 22 July
- Inflection point reached
The UK’s leading casino and bingo operator Rank (RNK) spun 4% higher to new 52 week high after giving a positive unscheduled trading update for the year to 30 June.
The shares have doubled over the last year driven by positive trading momentum and excitement over the growth opportunity created by new land-based gambling reforms which come into effect on 22 July.
BETTER THAN EXPECTED
The Grosvenor casinos and Mecca bingo operator said full year group like-for-like net gaming revenue grew 11% to circa £795 million and it now expects to deliver more than £63 million of like-for-like operating profit.
Shore Capital’s Greg Johnson noted the new guidance is around 7% ahead of his 2025 forecasts.
Johnson said: ‘With the strong revenue momentum over the financial year having continued into Q4, we anticipate further progress in full year 2026 and beyond as the group delivers on management’s twin aspirations for both Digital and underlying Grosvenor Venue.’
WHAT THE NEW RULES MEAN FOR RANK
The government has passed into law new rules which are intended to level the playing field between land and online-based gambling firms.
The new rules will allow Rank to add 1,360 new machines to its Grosvenor estate in the near term and ultimately 3,112 in total, which will be rolled-out over the next two to three years, doubling the size of its offering.
In addition, sports betting will be permitted in all casinos with Rank planning to introduce various sports betting concepts in several Grosvenor venues.
Johnson has previously said he believes the laxer rules could add an incremental £20 million to £25 million to profitability over the medium term, and he now expects to update his estimates.
EXCITING INFLECTION POINT
Chief executive John O’Reilly said: ‘The momentum experienced in the first three quarters has continued, with strong trading in Q4 resulting in our full year underlying operating profit being ahead of expectation.
‘We are at an exciting inflection point for the group with the land-based casino reforms now law and coming into force from 22 July.
‘At that point, we will begin the process of securing licence variations from local authorities in England and Wales ahead of the rollout of additional gaming machines across the Grosvenor estate to better meet customer demand.’
Rank is expected to release its full year results on 14 August 2025.
