The Rank Group – results from gaming group show a transformative year going forward, shares 137p, broker sees doubling

14.08.2025

This morning’s results announcement from Rank Group (LON:RNK), the UK’s £701m-capitalised gaming and entertainments group, reported that the year to end-June saw its group underlying net gaming revenues growing 11% to £795.3m (£716.3m), while its pre-tax profits rose an impressive 248% to £53.9m (£15.5m).

The group’s earnings generated came out some 54% ahead at 9.1p (5.9p) per share, while its dividend was increased by 206% to 2.60p (0.85p) per share.

Growth in all divisions

The business stated that the last year was marked by continued strong momentum, with revenue growth across all businesses, and profit growth supported by strong returns on investment.

The Management stated that it had delivered against its strategic priorities of sustained growth in its Grosvenor venues; accelerating growth and driving scale in digital; and maximising cash in its bingo businesses.

The group reported that it had seen strong growth in its Grosvenor venues and its UK digital business, the two businesses where significant investment has been targeted.

Strategically, the strong revenue growth was underpinned by the group’s three enabling priorities: technology and data; safer gambling, and people and culture.  

Management Comment

Along with the Finals announcement CEO John O'Reilly stated that:

"We have had another successful year, delivering revenue growth and profit ahead of our expectations.

Both online and in our venues the customer reaction to the investments we are making in our businesses has been excellent.

We are growing profitability and have a strong net cash position which will enable both continued investment and progressive dividend returns for our shareholders.

With the long-awaited legislative reforms for casinos now delivered, the Group is at an exciting inflection point.

The Grosvenor business will benefit from the higher gaming machine allocations and the introduction of sports betting which will better meet existing customer needs and increase the attractiveness of casinos to a broader base of consumers.

Our bingo businesses continue to strengthen as we invest in the quality and value of the customer offering.

Our online business is tracking to the expected 8-12% revenue growth rate as we drive the benefits of our proprietary technology and develop seamless cross-channel experiences for our customers.

We have a very strong roadmap of opportunity to build further success for the Rank Group over the coming years.”

Analyst Comment

Greg Johnson, at Shore Capital Markets, has a Buy out on the group’s shares.

This morning he has noted that the results clearly show that the group is set for a transformative year.

He is looking for the business to see its operating profit being forecast to build to over £100m by FY29, worth 16p per share in earnings.

Johnson believes that “this opportunity is yet to be reflected in the share price.”

In My View

This morning the group’s shares have eased back 8p to 137p, at which level I consider that they are a ‘money machine’ bargain.