Buzz Bingo 2022 revenue leaps 39% amid sweeping cost-cutting measures

Buzz Venus Group, the holding company for Buzz Bingo, has posted revenue of £195.1m for the 12 months to 14 January 2023 on the back of online and retail growth.

The £195.1m figure represents a 39.6% year-on-year (YoY) increase from the £139.8m posted in the preceding 12 months to January 2022.

Online revenue grew 8.2% YoY to £29.7m as the firm focused on attracting recreational customers and enhancing player protections, which follow the recommendations outlined in the white paper into the Gambling Act 2005 review. 

Buzz Bingo added that current trading figures indicate online growth is set to accelerate further, with recent numbers showing a 30% jump in revenue compared to last year. 

Regarding the firm’s retail offering, revenue rose by 47.2% YoY to £165.4m. This positive performance by both arms of the business led to underlying EBITDA tripling from £30.5m to £10.2m. 

Overall gross profit for the firm was up to £137m from £93.6m. However, the group reported an overall loss of £53.6m after both tax and the costs of restructuring were taken into account.

In terms of directorial remuneration, Buzz Bingo doubled its total pay package from £1.1m to £2.2m for key management.

The highest-paid director, who remained unnamed, saw their pay more than double from £444,000 in 2021 to £919,000 over the period, which includes a £393,000 payment for loss of office as part of the restructuring of the business.

The aforementioned restructure has seen the firm look to secure efficiencies across the business, and the company reaffirmed it will continue to do this for the rest of the year.

Dominic Mansour, Buzz Bingo CEO, commented: “We’ve come out of an extremely challenging period, and while rising inflation and the ongoing cost-of-living crisis remains a concern for the entire industry, we have been heartened by the growth in new, younger customers with an ongoing interest in exploring different forms of leisure and entertainment, both online and across our retail clubs.

“In common with the entire leisure and hospitality sector, we have had to accept the economic headwinds of inflation and rising costs.  

“We have met those challenges head-on, moving quickly to reduce and control costs so we can secure a sustainable and successful long-term future for our business. 

“Having completed our efficiency drive ahead of schedule, our focus is now moving onto growing our omnichannel business, and we’re beginning to realise that growth across the business,” he added.

During the trading period, Buzz also invested heavily in improving player protection via its Athena framework. This included implementing new customer vulnerability protections, affordability measures and risk protections. The firm also brought in £10 maximum slot stake limits. 

Mansour said: “We now have a business that is the right scale and shape and also has the right protections in place for customers.  This is the perfect springboard to continue our push to be the nation’s number-one choice for bingo.”