Rank Group reported a sharp fall in first-half profit despite higher revenue, with outgoing chief executive John O’Reilly warning of further cost pressures as higher UK gambling taxes take effect.
Net profit fell 26% to £18.5 million ($25.52 million) in the six months ended 31 December 2025, even as total net gaming revenue rose 5% year-on-year to £420 million ($579.38 million).
The decline was driven by rising costs across the business, particularly higher taxation. Operating profit dropped 11.1% to £31.3 million, while pre-tax profit fell 18.7% to £23.9 million. Cost of sales increased 3.5% to £236.7 million, and other operating costs rose 4.1% to £153.3 million.
Finance-related costs of £7.4 million reduced profitability further, while increased taxation of £5.4 million contributed to the fall in net profit, which declined 25.7% year-on-year.
“We continue to deliver improving results which demonstrate the resilience of the group and our ability to take advantage of the opportunities available to us, both online and in our venues,” O’Reilly said.
O’Reilly said the company faced additional headwinds from forthcoming changes to the UK tax regime. Remote gaming duty is due to rise from 21% to 40% in April 2026, while a new general betting duty for remote betting will be introduced in April 2027, increasing to 25% from 15%. The measures come on top of the statutory levy introduced in April 2025.
“The second half of the year will bring further cost headwinds, principally in our UK digital business, which will be impacted by the UK government’s huge increase in tax rates,” O’Reilly said. “We have already executed measures to mitigate some of this impact, while continuing to prioritise customer experience, and the group will respond with agility as a heavily disrupted landscape takes shape in the UK.”
He noted that the abolition of bingo duty, announced alongside the tax increases, would help support jobs and investment in Rank’s land-based operations.
Revenue growth was reported across all business segments during the period. Grosvenor venues’ revenue rose 6% to £204 million, supported by the addition of 850 gaming machines following land-based casino reforms. Mecca bingo venues’ revenue increased 4% to £67 million, despite a slight decline in customer visits and the closure of one venue.
Rank’s Enracha business in Spain reported a 6% rise in revenue to £21 million, driven by higher spend per visit. Digital revenue grew 8% to £114.8 million, with average revenue per customer up 18%. UK digital revenue increased 9%, while Spain’s digital revenue edged 1% higher.
January 29 marked O’Reilly’s final day as chief executive. Chief Financial Officer Richard Harris will take over as interim CEO, while John Ott has recently assumed the role of chairman.
“As I retire as CEO, I would like to pay tribute to my highly talented colleagues across the group for their enduring commitment to our customers, which has again delivered another strong set of results,” O’Reilly said.
Original article: https://www.yogonet.com/international/news/2026/01/29/117366-rank-group-sees-h1-profit-fall-26-despite-5-revenue-growth
