The Rank Group (LON:RNK) Issues Quarterly Earnings Results

The Rank Group (LON:RNK) posted its earnings results on Thursday. The company reported GBX 10.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The Rank Group had a return on equity of 9.03% and a net margin of 4.20%.

Here are the key takeaways from The Rank Group’s conference call:

• Strong FY2026 performance: Like-for-like net gaming revenue increased 6% to £834 million, while operating profit rose 21% to £78.6 million; the proposed full-year dividend increased 35% to 3.5p per share.
• Current trading has remained robust, with revenue up 8% in the first six weeks of FY2027, including 15% growth in Grosvenor gaming machines and 10% growth in digital revenue.
• The 40% Remote Gaming Duty is expected to reduce FY2027 digital profitability by about £15 million despite mitigation, while management warned that profitability will “reset” in the year ahead.
• Grosvenor’s expanded gaming-machine estate is showing improving momentum, and management believes additional machines, smaller electronic-led casinos and stronger machine productivity can support the path toward at least £100 million of medium-term operating profit.
• Rank closed nine Mecca venues after an estate review, leaving roughly 40 venues viewed as appropriate under the current tax regime; FY2027 capital expenditure is expected to fall to around £40 million, improving underlying cash generation but limiting near-term investment.

The Rank Group Stock Down 0.4%

LON:RNK traded down GBX 0.40 on Friday, hitting GBX 105.40. 736,512 shares of the company’s stock traded hands, compared to its average volume of 824,245. The firm has a 50-day moving average price of GBX 98.27 and a 200-day moving average price of GBX 95.79. The company has a current ratio of 0.45, a quick ratio of 0.65 and a debt-to-equity ratio of 61.99. The company has a market cap of £493.73 million, a PE ratio of 12.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.58. The Rank Group has a 1 year low of GBX 86 and a 1 year high of GBX 144.80.

Analyst Ratings Changes

RNK has been the subject of several analyst reports. Peel Hunt reiterated a “buy” rating and set a GBX 175 price objective on shares of The Rank Group in a research report on Monday, July 13th. Shore Capital Group reiterated a “house stock” rating on shares of The Rank Group in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft raised their price target on The Rank Group from GBX 111 to GBX 119 and gave the company a “hold” rating in a report on Thursday. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, The Rank Group presently has an average rating of “Moderate Buy” and an average price target of GBX 147.

The Rank Group Company Profile

The Rank Group Plc has been entertaining Britain since 1937, from its origins in motion pictures to today’s gaming based entertainment brands. Over the course of more than three-quarters of a century, the Group has entertained many millions of customers in Britain and around the world. The Group’s story is one of iconic brands and talented people with a mission to entertain.