**Summary of Rank Group PLC Half-Year Report (H1 2025/26)**
**Financial Performance Highlights**
**Revenue Growth** Like-for-like (LFL) net gaming revenue (NGR) increased by 6% to £419.8 million, driven by growth across all business segments.
**Profitability** Underlying LFL operating profit rose by 15% to £40.6 million, despite a statutory operating profit decline to £31.3 million due to a £6.5 million loss from a payment fraud incident in Spain.
**Cash Position** Net cash (pre-IFRS 16) improved by 63% to £39.4 million, with net free cash flow at £3.8 million.
**Dividend** Interim dividend increased by 54% to 1.00 pence per share, reflecting confidence in the Group’s outlook.
**Segment Performance**
**Venues** LFL NGR grew by 5% to £296.1 million, with Grosvenor venues up 6% and Mecca venues up 4%.
**Digital** LFL NGR increased by 8% to £123.7 million, led by 17% growth in Grosvenor online and 5% in Mecca online.
**International** Spain’s digital revenues grew by 1%, while Portugal’s YoBingo soft launch was successful, with a full launch planned for February 2026.
**Strategic Initiatives**
**Grosvenor Venues** Installed 850 additional gaming machines across 37 venues, with plans to optimize product offerings and layouts in H2.
**Digital Mitigation** Implemented measures to offset the impact of the Remote Gaming Duty (RGD) increase from 21% to 40%, including reduced media spend and renegotiated supplier contracts.
**Safer Gambling** Enhanced customer monitoring systems and joined GamProtect, a cross-operator data-sharing initiative to protect vulnerable customers.
**Challenges**
**Cost Headwinds** Increased employment costs and the RGD hike will impact profitability, particularly in Q4 and beyond.
**Fraud Incident** A £6.5 million loss from payment fraud in Spain was classified as a separately disclosed item.
**Outlook**
**Medium-Term Target** Remains focused on delivering at least £100 million in annual operating profit.
**Leadership Transition** John OReilly retired as CEO, with Richard Harris appointed as interim CEO.
**Sustainability and Governance**
**Environmental** Achieved a 41% reduction in emissions, driven by renewable energy adoption and decarbonization efforts.
**Board Changes** John H. Ott appointed as Chair, replacing Karen Whitworth.
**Conclusion**
Rank Group demonstrated resilience with strong H1 performance, despite challenges like the RGD increase and fraud incident. Strategic investments in venues and digital, coupled with cost mitigation measures, position the Group to navigate headwinds and pursue its medium-term profit target.