UK gambling operator Rank Group released its financial results for the second half of fiscal year 2025 (ending December 31), with total net gambling revenue increasing by 5% year-over-year to 420 million pounds (approximately 580 million US dollars), but net profit fell 26% year-over-year to 18.5 million pounds due to increased costs such as taxes. The outgoing CEO John O'Reilly warned that the increase in UK gambling tax rates from 2026 onwards will pose greater cost challenges to the company. As a major player in the UK gambling industry, its performance fluctuations reflect the current operational pressures of the industry, and relevant compliance cost reduction cases can be referenced on the PASA official website.
Core Performance: Revenue Growth Across the Board, Profits Eroded by Costs
Rank Group's various business segments achieved revenue growth, but high costs directly dragged down profit performance:
Overall financial data: Operating profit for the first half was 31.3 million pounds, down 11.1% year-over-year; pre-tax profit was 23.9 million pounds, down 18.7% year-over-year; after an additional 5.4 million pounds in tax costs, net profit fell to 18.5 million pounds, a year-over-year decrease of 25.7%;
Cost structure changes: Cost of sales increased by 3.5% year-over-year to 236.7 million pounds, other operating costs increased by 4.1% to 153.3 million pounds, financial related costs were 7.4 million pounds, multiple cost overlays offset the revenue growth dividend.
Core Cost Pressure: Significant Increase in UK Gambling Tax
The UK government's new tax policy is a major challenge faced by Rank Group, and its impact will continue to deepen:
Key tax rate changes: From April 2026, the remote gambling tax will soar from 21% to 40%; from April 2027, the general betting tax applicable only to online betting profits will be raised from 15% to 25%; in addition, a statutory tax took effect in April 2025;
Industry impact: O'Reilly stated that the increase in remote gambling tax is a "major blow" to the UK market, and only the cancellation of the bingo tax, a policy adjustment, could provide some support for maintaining employment and investment in offline operations;
Future warning: Cost pressures in the second half of the year will further concentrate on the UK digital business, and the company has taken some mitigation measures while flexibly responding to the "dramatic changes" in the UK gambling industry.
Business Segment Performance: Stable Offline Business, Digital Business Leading Growth
The various business segments achieved revenue growth by leveraging different strengths, demonstrating certain resilience:
Offline Business: Policy Dividends + Increase in Per Customer Spending Drive
Grosvenor venue business: Revenue was 204 million pounds, up 6% year-over-year, benefiting from the UK offline casino reform (effective July 2025), adding 850 gaming machines, venues can configure 25-80 devices based on area;
Mecca bingo business: Revenue was 67 million pounds, up 4% year-over-year, although customer traffic decreased by 1% and one venue in Scarborough closed, but increased per customer spending drove performance;
Spain's Enracha business: Revenue was 21 million pounds, up 6% year-over-year, customer traffic remained stable but per customer spending increased by 6%, driving the expansion of prize pools and improving liquidity.
Digital Business: Fastest Growth, Significant Increase in Per Customer Value
Overall performance: Revenue was 114.8 million pounds, up 8% year-over-year, the fastest growing business among all segments;
Segment highlights: UK digital business revenue grew by 9%, with Grosvenor digital business increasing by 17%, Mecca digital business growing by 5%; brands such as YoBingo, YoCasino, and YoSports in the Spanish market drove local digital revenue growth by 1%;
Core drivers: Average revenue per customer increased by 18% year-over-year, with increased consumer willingness to spend being key to the growth of digital business.
Management Changes: CEO Departure, CFO Temporarily Takes the Helm
January 29 is the last day in office for CEO John O'Reilly, who has held the position since May 2018, having previously served as a non-executive director at William Hill and managing director of Coral Interactive at GVC Group; the company has confirmed that Chief Financial Officer Richard Harris will serve as interim CEO, leading the company into the next phase of development. O'Reilly stated that the team's dedication and commitment have driven the company to achieve robust performance, and he is confident in the future development of the company.
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This article is from "PASA-Global iGaming Leaders" gambling news channel:https://t.me/pasa_news
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