Buzz Bingo, formerly known as Gala Bingo, experienced an increase in revenue and earnings for the financial year ending on January 14, 2023. However, the growth was hindered by long-term and short-term challenges, including the impact of inflation. In March 2023, Buzz Bingo announced the closure of nine of its 91 retail locations due to the lack of financial viability.
During the 12-month period, Buzz Bingo recorded a revenue growth of 39.6% to £195.1m ($239.5m/€224.2m) thanks to the growth in both its retail and online businesses. This growth was supported by the absence of Covid-19 restrictions since 2019. Retail revenues increased by 47.2% to £165.4m, although the recovery in admission levels compared to 2019 was slower than expected.
The online business of Buzz Bingo also showed improvement during the financial year and expanded its customer base. Online revenues grew by 8.2% compared to the previous year. Various enhancements were made, including the introduction of a new iOS app and website improvements to enhance the player experience. However, online revenue still represents less than 15% of the total group revenue.
Despite the growth in both business segments, Buzz Bingo faced cost pressures, particularly in its retail clubs, which affected operating margins. Factors such as increased labor costs, inflation in utilities, and supply chain disruptions led to higher costs in food, beverages, and labor, while also impacting customers’ disposable incomes.
After facing insolvency during the Covid-19 pandemic, Buzz Bingo initiated a fundamental cost restructuring in the last quarter of 2022, leading to the permanent closure of nine retail locations in April 2023. The overall results for the group showed a loss of £53.3m, which was higher than the previous year. The loss included a non-cash goodwill impairment charge of £19.4m and exceptional costs related to reorganization and restructuring amounting to £3.2m.
In spite of the challenging leisure market in 2023, Buzz Bingo remains confident in its plans to manage risks and provide value for customers. The company aims to enhance the customer experience through its customer-centric omnichannel offering, allowing customers to conveniently play casino games either in clubs or online, while prioritizing the prevention of harm at every stage.
