UK's Rank Group FY underlying profit rises 21%
UK's Rank Group FY underlying profit rises 21%
Overview
UK casino and bingo operator's preliminary fiscal year LFL NGR rose 6% year-on-year
Preliminary underlying operating profit increased 21%, while underlying EPS rose 15%
Statutory profit fell due to one-off regulatory and fraud costs
Outlook
Rank sees digital profitability declining in 2026/27 due to higher Remote Gaming Duty at 40%
Company expects further improvement in underlying cash generation in 2026/27
Rank reiterates ambition to deliver at least £100 mln underlying operating profit in medium term
Result Drivers
GAMING MACHINE INVESTMENT - Growth in gaming machine performance, especially after installing 850 new machines in Grosvenor casinos, supported revenue and profit growth
DIGITAL SEGMENT GROWTH - Digital LFL revenue grew 8%, with Q4 growth of 12%, supported by performance marketing and cost mitigation actions following increased Remote Gaming Duty
COST ACTIONS AND EFFICIENCY - Decisive cost actions and efficiency savings helped offset cost inflation, increased taxation and regulatory headwinds
Company press release: ID:nRSM4759Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY LFL Underlying Operating Profit |
| GBP 79.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy"
Wall Street's median 12-month price target for Rank Group PLC is GBp131.50, about 31.8% above its August 12 closing price of GBp99.80
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
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Aug 12 - Hong Kong's Galaxy Entertainment Q2 revenue falls 2%
Aug 11 - UK's ECARX Q2 revenue rises 45%, net loss narrows
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)