As revenue increases in FY21, Buzz Bingo reduces losses.

08 June 2022

As revenue increases in FY21, Buzz Bingo reduces losses.

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Revenue increased 14.4% from £122.2m in the previous financial year to £139.8m (€164.0m/$175.1m) for the 12 months from 17 January 2021 to 15 January 2022.

According to Buzz Bingo, their land-based bingo locations were able to accommodate more patrons after the UK loosened its unique coronavirus (Covid-19) regulations.

In contrast, when players flocked back to land-based venues after their reopening and the relaxing of COVID-19 regulations, online revenue fell 31.0% year-on-year. Due to the extensive temporary closure of its venues in accordance with Covid-19 regulations, Buzz Bingo said that last year's good performance was because players turned to online in the absence of retail.

Although sales expenses were 10.0% higher at £46.4m, gross profit increased to £93.7m, a 17.1% increase, due to the rise in revenue.

Administrative expenditures were £113.8m, a 32.6% decrease when compared to other expenditures. The operating profit before extraordinary items for the full year was £10.2m, up from a £11.0m loss the previous year, thanks to lower costs and more sales.

Extraordinary items of £3.2m and depreciation, amortisation, and impairment amounting to £28.7m were also reported by Buzz Bingo. Depreciation, amortisation, and impairment expenses were £69.1m in 2020 due to a £28.8m non-cash impairment of goodwill and extraordinary items totalling £14.3m, but these amounts were substantially lower this year.

As a result, the operational deficit shrank to £20.1m, down from £88.7m the previous year. The pre-tax loss was £51.9m, which is smaller than £130.7m in 2020, as net financial expenses were £31.7m, down from £42.0m.

Net loss was £51.9m, down from £141.9m the year before due to Buzz Bingo's lack of tax payments.

Buzz Bingo stated that the company is now prepared to deal with the "ongoing uncertainty that Covid-19 continues to bring" because of its "encouraging signs" and resilience in the market.

The asset manager Intermediate Capital Group bought Buzz Bingo from Caledonia Investments for a "nominal amount" throughout the year.