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

The Rank Group (LON:RNK) posted its quarterly earnings data on Thursday. The company reported GBX 10.50 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 Trading Up 6.0%

RNK traded up GBX 6 during midday trading on Thursday, reaching GBX 105.80. 2,148,044 shares of the company were exchanged, compared to its average volume of 824,811. The stock has a market capitalization of £495.60 million, a P/E ratio of 12.90, a PEG ratio of 1.75 and a beta of 1.58. The Rank Group has a one year low of GBX 86 and a one year high of GBX 151.80. The stock’s 50-day simple moving average is GBX 97.92 and its 200 day simple moving average is GBX 95.63. The company has a debt-to-equity ratio of 61.99, a quick ratio of 0.65 and a current ratio of 0.45.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Shore Capital Group reissued a “house stock” rating on shares of The Rank Group in a research note on Thursday. Peel Hunt reissued a “buy” rating and issued a GBX 175 target price on shares of The Rank Group in a research note on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of The Rank Group to a “hold” rating and set a GBX 106 target price on the stock in a research report on Thursday, April 16th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of GBX 140.50.

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.