Buzz Bingo records online revenue rise of 31% amid strong 2023 performance
Nottingham-based bingo operator also generated a 14% increase in underlying EBITDA as online actives and average spend per user leap
Buzz Bingo has posted online revenue growth of 31% year on year (YoY) for the 12 months to 13 January 2024 amid an increase in average player spend.
The omnichannel bingo brand explained that 2023 was a “year of reset”, but that did not stop the firm from seeing underlying EBITDA also rise 14% YoY from £30.5m to £34.7m 12 months later.
The rise in underlying EBITDA was significantly influenced by the increase in online revenue, 44% of which came from customers who had initially first played in the company’s retail clubs, highlighting the strength of Buzz Bingo’s omnichannel strategy.
Net gaming revenue also followed a similar pattern, with Buzz Bingo posting £207m for 2023, a 6% YoY increase from 2022’s total of £195m.
The increase was also largely influenced by the aforementioned online revenue rise of 31%, alongside a retail revenue rise of 5%.
The number of average online customers grew 19% YoY, while the amount of new online customers also rose by 25%, in turn leading to a 10% increase in online customer spend.
Buzz Bingo said these increases were driven by “operational enhancements, innovation and putting customers first”.
The first half of 2024 has also pointed to Buzz Bingo building on the momentum presented by a strong 2023.
In the year-to-date, Buzz Bingo has amassed a 22% increase in underlying EBITDA, with both retail and online segments on course for a record year, with the latter’s revenue rising 24%.
Dominic Mansour, Buzz Bingo CEO, talked up the performance in 2023 before issuing an optimistic update regarding the remainder of 2024.
“We delivered a solid performance in 2023, with strong online growth ahead of the market, and underlying profitability up 14%,” Mansour explained. “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. ”
Mansour went on to explain how Buzz Bingo’s omnichannel approach has put the firm in good stead for the future.
He added: “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.”
May 2024 saw Buzz Bingo announce the acquisition of two MERKUR-owned bingo clubs, which in turn is expected to spark a 10% rise in retail revenue alongside the offshoring of its online business.