The Rank Group (LON:RNK) Announces Earnings Results

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

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 Trading Up 3.5%

Shares of The Rank Group stock opened at GBX 109.48 on Friday. The stock has a 50 day moving average of GBX 98.12 and a 200 day moving average of GBX 95.72. The company has a debt-to-equity ratio of 61.99, a quick ratio of 0.65 and a current ratio of 0.45. The firm has a market capitalization of £512.84 million, a price-to-earnings ratio of 13.35, a PEG ratio of 1.75 and a beta of 1.58. The Rank Group has a fifty-two week low of GBX 86 and a fifty-two week high of GBX 144.80.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft increased their target price on The Rank Group from GBX 111 to GBX 119 and gave the company a “hold” rating in a research report on Thursday. Peel Hunt reaffirmed a “buy” rating and set a GBX 175 price target on shares of The Rank Group in a research report on Monday, July 13th. Finally, Shore Capital Group reissued a “house stock” rating on shares of The Rank Group 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 stock. Based on data from MarketBeat.com, The Rank Group currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 147.

About The Rank Group

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.