(AsiaGameHub) –   For the three-month period ending 31 March 2026, Rank Group’s like-for-like net gaming revenue rose to £205.4 million.

Robust profit conversion has left Rank optimistic that it will beat the 2024-25 operating profit figure of £63.7 million (excluding the effects of club openings, closures, foreign exchange fluctuations, and discontinued operations) during its current fiscal year, which wraps up on 30 June 2026.

Grosvenor Casinos benefits from expanded machine rollout

Of that £205.4 million total, Rank Group’s Grosvenor Casinos segment contributed £95.0 million, marking a 5% year-over-year rise. The UK government passed legislation in July of the prior year that lets casinos add more gaming machines on their premises, and in Q3 gaming machines were the operator’s fastest-growing net gaming revenue vertical, jumping 10% after roughly 850 extra machines were activated across its venues.

These regulatory changes also permit sports betting, and Rank is rolling out in-person wagering at 38 of its 50 Grosvenor locations. Trials are currently underway in Luton, Leicester, and Reading ahead of a broader nationwide launch.

Though the ongoing conflict in the Middle East “will create continued uncertainty for international travel”, Rank remains confident that revenue growth will persist into Q4.

Rank’s reaction to RGD hike: Time to invest?

Digital was Rank Group’s second-largest business unit, with net gaming revenue climbing 4% to £60.9 million. However, this segment will face the sharpest impact after the Remote Gaming Duty was raised from 21% to 40% of gross gaming revenue earlier this month.

The company projects an annualized hit of roughly £46 million from this duty hike before mitigation measures are applied. This would fully erase the profitability of its UK business, which posted a like-for-like operating profit of £25 million during the 2024-25 fiscal year.

Rank has thus taken steps to lessen the impact, including cutting staff numbers, trimming above-the-line marketing costs and TV sponsorships, renegotiating supplier contracts, while preserving spending on performance marketing and customer bonus programs.

Stronger Spanish performance shores up Digital

Digital performance in the UK was lackluster, with net gaming revenue growing only 2%, as it faced stiff year-over-year comparisons to Q3 2024-25. A strong showing from the Spanish digital division, where net gaming revenue rose 14% due to product enhancements, offset this weaker UK performance.

However, analysts from Regulus Partners noted that Rank must prioritize investing in its land-based business “while making sure online customers are not let down by generic, unoriginal offerings”.

“This calls for investment rather than just mitigation,” Regulus stated, adding that prioritizing spending to drive long-term top-line growth instead of scaling back operations to protect short-term profits would resolve its issues far more successfully.

Mecca, Rank’s bingo division, was among the few segments to gain from Chancellor Rachel Reeves’ November 2025 budget, following the abolition of bingo duty starting 1 April. This is forecast to deliver double-digit operating profit growth for the unit, saving the company roughly £6 million annually in duty payments, and Q3 revenue climbed to £37.8 million, a 5% year-over-year improvement.

In Spain, Rank’s Enracha unit posted a 9% revenue rise to £11.7 million, fueled by strong performance from its gaming machines. Product revenue jumped 27% over the three-month period.

Rank CEO: Business on track to hit £100 million operating profit

For the first nine months of the company’s fiscal year ending 31 March 2026, the group’s like-for-like net gaming revenue totalled £625.2 million, a 6% increase from the same period the previous year. With revenue growth expected to continue through Q4, underlying operating profit is forecast to hit £68 million, which accounts for energy price volatility tied to the conflict in Iran.

Per interim Chief Executive Richard Harris, the Q3 trading update — published ahead of Rank Group’s full 2025-26 financial results on 13 August this year — highlights the business’s resilience, the strength of its customer offering, and its growth strategies. Harris assumed the CEO position on 29 January, following John O’Reilly’s retirement.

“We have put in place the necessary measures to offset most of the impact of the increased RGD on our UK digital business, and we have clear plans to drive steady, sustainable revenue growth, so the group is well positioned to hit our medium-term target of delivering at least £100 million in operating profit,” Harris added.

Investors have responded positively to Rank Group’s Q3 trading update, with the company’s shares climbing 12.27% to 101.50 pence per share in London trading this morning.