Buzz Bingo delivers 22% increase in Underlying EBITDA in the first half of 2024 building on a strong FY 2023 performance powered by our omnichannel strategy

Monday, 1 July 2024: Buzz Bingo (“Buzz” or the “Group”), the UK’s leading omnichannel bingo brand, provides its results for the year ended 13 January 2024 (FY 2023) and an update on current trading in the year to-date.

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.

Underlying EBITDA¹, the Group’s key measure of profitability, grew by 14% in FY 2023. Net gaming revenues increased 6%, with Retail returning to growth, and Online delivering an uplift of 31% year-on-year, significantly outperforming the market.

Importantly, 44% of Online revenue in FY 2023 was from customers who first played in the Group’s retail clubs, demonstrating the success of Buzz’s omnichannel strategy,

In addition to the development of its omnichannel offering for customers, Buzz’s leadership team introduced greater operational rigour across the Group in line with its turn-around plan. This included tighter cost controls and creating a leaner more profitable retail estate. As the Group continues to focus on its low-stake, social and recreational customers, investments were also made to enhance their safety, with the Buzz successfully completing its Gambling Commission assessment in the last year.

The strong momentum has continued into the current financial year, with Underlying EBITDA for the year to date increasing by 22% versus the prior year. This performance reflects strong growth in customer admissions and the continued successful conversion of retail customers to online. Like-for-like³ revenues are up 5% year-to-date, with growth across both Retail and Online, reflecting an increased focus on sustainable profitable growth. Online revenue growth is up 24% in the year to date, building on record Online revenue and profitability in FY 2023.

Dominic Mansour, Chief Executive Officer of Buzz Bingo, commented: “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. With our strategy now firmly in place, we are continuing to maintain the momentum into the current year, and are pleased that EBITDA for the first half is up nearly a quarter, in clear evidence that our turn-around plan is delivering.

“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.”

FY 2023 Financial Highlights

• Net Gaming Revenues grew 6% to £207m (2022: £195m) as a result of improving customer experience across Buzz’s omnichannel offering
  • Retail revenues grew by 5% on a like-for-like basis
  • Online revenues grew by 31%
• Underlying EBITDA increased 14% to £34.7m (2022: £30.5m)
  • Driven by increase in customer admissions and growth in Online revenues, supported by conversion of customers to omnichannel
  • Cost reduction plan and restructuring completed in the year has resulted in a leaner operational cost base to improve future profitability

FY 2023 Operational and Strategic Highlights

• Retail clubs welcomed 200,000 new visitors – around half of which are under 35 years old
  • Driven by focusing on higher quality clubs and continued improvements in customer experience, focusing on price and attractive prize levels
• Average online customer numbers grew 19% versus the prior year and there was a 25% increase in new Online customers, with Online customer spend up 10%
• Online business facilitated 30,000 games of bingo per week in the year and delivered double-digit growth in both customer numbers and spend per customer
  • Performance improvements driven by operational enhancements, innovation, and putting customers first
• Continued to innovate to attract customers new customers
  • Introduced award-wining Live Bingo concept in clubs and online, an experiential version of the game which utilises the latest technology to bridge the gap between Buzz’s Online product and the in-club interactive experience
  • Opened a new high street bingo concept in Borehamwood, utilising the latest streaming technology to bring together Buzz’s online and retail offering more closely.
  • Hosted music based, social-led and immersive events in club, mixing bingo with other forms of entertainment as Buzz focuses on creating a more compelling, widely appealing bingo experience based around fun and social experiences

Current Trading and Outlook

• In the year-to-date, Buzz has delivered a significant increase of 22% in Underlying EBITDA
• Overall, Group like-for-like revenues are tracking 5% above the prior year, with growth in Retail and Online revenues set to deliver another record year, with Online revenues in particular up 24%
• Sustained growth in both Retail and Online channels, with four consecutive months of Admissions growth in Retail
• In May 2024, Buzz announced the acquisition of two of the UK’s largest bingo clubs from MERKUR, which are forecast to increase Retail channel revenues by over 10% on an annualised basis, as well as the offshoring of the Online business as part of its strategy to grow and increase efficiencies
• Looking forward, focus will be on continuing to grow the customer base by building on Buzz’s player-centric omnichannel offering and investing in its clubs and the latest technology
• The Group remains well-positioned to capture the anticipated growth in bingo as consumer confidence continues to grow, with players from younger demographics increasingly attracted to the experience bingo offers

ENDS

1. EBITDA , earnings before interest, tax, depreciation, amortisation impairment, profit on sale of fixed assets and exceptional items.  
2. This is prior to the impact of the acquisition of the two MERKUR clubs which will start to contribute to revenue growth from this current period

About Buzz Group Ltd 

Buzz Group Ltd runs the UK’s largest omnichannel bingo operator, Buzz Bingo and launched its online platform, buzzbingo.com in September 2018. 

Buzz Bingo has a cross-generational community of over a million members and each week its 82 clubs welcome over 100,000 players through their doors. Members win an average of £2.1 million per week in the Clubs with £400,000 a week won online. buzzbingo.com captures the in club feeling of playing among friends, allowing people to play together, anywhere via their mobile, tablet, desktop or on Touchpads in all clubs. 

With the game enjoying renewed popularity amongst new, younger players, Buzz Group is well-positioned to get the British public to fall in love with bingo in all its forms. Buzz Group are proud of their approach to safer gambling and fostering its community of players both in its clubs and online. 

Buzz Bingo supports its clubs and website from its Buzz Hub in Nottingham.