Buzz Bingo hails revenue recovery after “year of reset”
The UK bingo brand returned to growth after being hit by the Covid-19 pandemic.
UK.- Buzz Bingo has reported a return to growth in full-year 2023 following the challenges posed in the wake of the Covid-19 pandemic. Revenue was up 6 per cent year-on-year at £207m.
The company highlighted the results of its new omnichannel strategy. Retail income rose 5 per cent to £168m and online revenue 31 per cent to £39m. It noted that 44 per cent of online revenue was from customers who first played in retail clubs. As for retail performance, Buzz Bingo reported 200,000 new visitors to its 81 bingo venues, noting that around half were under 35 years old.
The company said: “FY 2023 was a year of reset for the group. Buzz set out its five-year business plan to deliver profitable growth and today’s results demonstrate successful delivery of that plan.”
Group CEO Dominic Mansour said: “We delivered a solid performance in 2023, with strong online growth ahead of the market, and underlying profitability up 14%. 2023 was a year in which we focused on resetting the business’s foundations and putting in place our omnichannel strategy to deliver sustainable growth.
“Our omnichannel strategy positions Buzz uniquely in the market. We have an extremely loyal, high-frequency retail customer base and much of our online growth owes to the successful implementation of our ability to convert retail players to play online. We remain confident in the future, capturing the opportunity that exists for Buzz, and ultimately delivering sustainable profitable growth.”
While the cost of sales rose, a cost control programme reduced group administrative costs from £152 to £120m. Underlying EBITDA was up 14 per cent like-for-like at £34.7m, while profit turned positive £14m, up from a £19m loss in 2022. Outstanding impairment charges of £19m and exceptional items of £4.4m resulted in a final loss of £30m, compared to £53m.
For 2024 to date, Buzz says underlying EBITDA is up 22 per cent while revenue is up 5 per cent.
In May, Buzz Bingo announced that it was moving its digital arm to Gibraltar. It says the move would provide several strategic advantages, including increased proximity to key suppliers, the ability to seek international opportunities and support for its omnichannel growth plans.
