REVENUES GROW AT BUZZ WHILE COSTS OF RESTRUCTURING LEAD TO ANNUAL LOSS

Thursday, 24 October 2023 -  Buzz Bingo saw retail revenues across its bingo clubs grow by 47.2% year on year in its first full trading period since the pandemic.

The UK’s leading bingo operator reports a rise in underlying EBITDA as its recovery post-Covid; growth of its online business; and a new, younger demographic drive year on year revenue increase; although significant restructuring costs led to an overall loss.

The group’s retail estate also saw an increased number of new customers on a weekly basis, with half of those aged between 18 and 35.  This is part of a broader strategy to introduce bingo in its various forms to a younger audience with a number of initiatives in place to improve the customer proposition and deliver fun entertainment.

Online revenue grew by 8.2% from the prior year following a refocus on attracting recreational customers and enhancing player protections, in line with recommendations in the recently published Government White Paper.  Current trading figures indicate that online growth is set to accelerate even further with recent numbers showing a 30% jump in revenue since the same period in the prior year.

Dominic Mansour, Buzz Bingo Group CEO commented “We’ve come out of an extremely challenging period and while rising inflation and the ongoing cost of living crisis remains a concern for the entire industry, we have been heartened by the growth in new, younger customers with an ongoing interest in exploring different forms of leisure and entertainment, both online and across our retail Clubs.”

Gross Profit was up to £137 million on revenues of £195 million, however overall losses, after taxation, amounted to £53 million which is slightly up on the loss of £52 million reported twelve months ago. The net loss after tax was impacted by costs of restructuring and other one-off costs including a non-cash goodwill impairment charge.

Buzz Bingo has focused strongly on driving efficiencies across the business and will continue to do so through to the end of 2023.  It restructured its Head Office operations in the last quarter of 2022 to provide a leaner operational cost base.  April 2023 also saw the permanent closure of nine retail locations.  Additionally, the business initiated an energy reduction programme that is driving significant savings, with its energy consumption already reduced by 30%.

Mansour commented, “In common with the entire leisure and hospitality sector, we have had to accept the economic headwinds of inflation and rising costs.  We have met those challenges head-on, moving quickly to reduce and control costs so we can secure a sustainable and successful long-term future for our business. Having completed our efficiency drive ahead of schedule, our focus is now moving onto growing our omni channel business and we’re beginning to realise that growth across the business”.

Buzz Bingo has also invested significantly in improving player protections through its proprietary framework known as Athena. The business implemented new customer vulnerability protections, affordability measures and enhanced risk protections, as well as introducing a maximum online slots stake cap of £10. This in part reflects the business’ change of focus to the core bingo customer base of recreational, social, low-stake gamblers who prefer safe and low-risk gambling products. 

The changes already made to customer protections and safer gambling align with the proposals announced recently in the Government’s White Paper on gambling legislation.

Mansour continues, “We now have a business that is the right scale and shape and also has the right protections in place for customers.  This is the perfect springboard to continue our push to be the nation’s number one choice for Bingo. We are committed to creating a fun, entertaining but also safe experience for our customers – both online and in retail – building on our many years of experience at the heart of local communities across the UK.”