In its first full trading period since the pandemic, Buzz Bingo has witnessed an impressive 47% year-on-year growth in retail revenues across its bingo clubs, marking a significant resurgence for the UK’s bingo operator. This resurgence is largely attributed to the operator’s post-Covid recovery, the burgeoning online business, and the appeal it holds for a younger demographic.
Reviving Retail Revenues
The noteworthy increase in retail revenues signifies the successful resurgence of Buzz Bingo post-pandemic. The company’s strategic initiatives have played a pivotal role in this growth. Key among these was an endeavor to introduce bingo to a younger audience, resulting in half of the new customers falling within the 18 to 35 age group.
Online Business Flourishing
Buzz Bingo’s online revenue has also exhibited strong growth, with an 8% increase compared to the prior year. This growth comes on the heels of the company’s efforts to attract recreational customers and bolster player protections, aligning with recommendations from the Government’s White Paper on gambling.
Recent trading data indicates that online growth is poised to accelerate further, with a substantial 30% surge in revenue compared to the previous year.
Financial Highlights and Restructuring Costs
While the company reported robust growth in gross profit, reaching £137 million on revenues of £195 million, Buzz Bingo did report an overall annual loss of £53 million after taxation. This loss is marginally higher than the £52 million loss reported a year ago and can be primarily attributed to restructuring costs and other one-off expenses, including a non-cash goodwill impairment charge.
Buzz Bingo undertook various restructuring measures in late 2022, reducing operational costs by restructuring its Head Office operations. In early 2023, the company permanently closed nine retail locations. Additionally, an energy reduction program was initiated, resulting in a commendable 30% reduction in energy consumption.
CEO’s Outlook
Dominic Mansour, CEO of Buzz Bingo Group, acknowledged the challenges posed by inflation and rising costs. Still, he affirmed the company’s unwavering commitment to cost control measures that will secure its long-term future. Moreover, Buzz Bingo has invested in enhancing player protections, incorporating features like affordability checks and implementing a maximum online slots stake cap of £10.
The robust growth in retail revenues, online expansion, and ongoing commitment to financial discipline are indicative of Buzz Bingo’s promising trajectory in a dynamically evolving gaming and entertainment landscape.