Buzz Bingo, a leading name in the UK’s bingo industry, is set to acquire two of Merkur’s largest bingo halls located in Cricklewood and Northampton. This move comes as part of Buzz Bingo’s strategic expansion following a year of impressive performance.
In the wake of the Covid-19 pandemic, Buzz Bingo reported a remarkable revenue growth of 47 percent in its first full trading period, with a gross profit of £137 million ($167 million) and revenue of £195 million. The year 2023 saw the brand increase its retail revenue by 5 percent and online revenue by 31 percent, with EBITDA up 14 percent.
Buzz Bingo’s success isn’t confined to the UK. The brand recently relocated its digital business to Gibraltar, indicating a global vision for its operations.
Key Points
Buzz Bingo
✅ Acquisition
Two major Merkur bingo halls in Cricklewood and Northampton.
✅ Financial recovery
47% revenue growth post-Covid, gross profit of £137 million
✅ Global strategy
Digital business expansion to Gibraltar, indicating global ambition
✅ Cricklewood Club
Hosts 410,000 players annually, holds a Guinness World Record.
✅ Bingo’s popularity
Surge among younger demographic in the UK
✅ New products
Despite ad breach, bounced back with Future Anthem partnership
Source: SiGMA
The two clubs in question have been operational for over 25 years, with the Cricklewood club hosting 410,000 players annually and boasting 3,500 winners monthly. It also holds a Guinness World Record for the highest single bingo house prize. This acquisition will make the Cricklewood club the largest in Buzz Bingo’s portfolio.
Bingo’s popularity has surged among the younger demographic in the UK, as evidenced by several initiatives by Mecca Bingo, including free line-dancing sessions and Loose Women-themed scratchcards, made in partnership with ITV. Buzz Bingo’s October report further substantiated this trend, revealing that half of its new retail customers were aged 35 and under.
“Bingo in the UK is having a renaissance,” said Dominic Mansour, Chief Executive of Buzz Bingo. He expressed his delight at the prospect of acquiring the two leading bingo clubs, attributing the decision to the business’s thriving state and the growing demand for Bingo. “Buzz Bingo is positioning the business for accelerated growth, which is the key rationale behind our decision to move our Digital business to Gibraltar,” Mansour added.
Despite the year’s successes, Buzz Bingo faced a few hiccups, notably when its Halloween ad was ruled as breaching the advertising code by the Advertising Standards Authority (ASA) in January. However, the company quickly bounced back, partnering with Future Anthem later that month to introduce new personalisation features to its products. This resilience underscores Buzz Bingo’s commitment to innovation and customer satisfaction, promising an exciting future for the brand and its patrons.
UK Bingo market
The UK bingo market has been undergoing a transformation in recent years, with a noticeable shift from traditional, land-based bingo halls to online platforms. This transition has been expedited by the COVID-19 pandemic and mirrors wider trends in the industry, such as the surge in online gaming and the allure of its convenience.
Despite the growth of online bingo, there was a significant decrease in revenue from bingo in Great Britain, from over 800 million British pounds to approximately 130 million British pounds between April 2020 and September 2020. This decline is likely a consequence of the COVID-19 pandemic and indicates a fiercely competitive market where constant innovation and adaptability are crucial for maintaining market share.
Moreover, the number of bingo establishments in Great Britain also experienced a decline in 2020, suggesting a market consolidation and potentially intensifying competition among the remaining players.
In this competitive environment, companies like Buzz Bingo are strategically expanding through acquisitions and digital growth to fortify their position and tap into the escalating demand for bingo, both online and offline.
However, it’s important to bear in mind that the reliability of available data can fluctuate due to factors such as scheduled maintenance or unforeseen technical issues on individual bingo sites. Therefore, for the most precise and current information, it’s advisable to consult dedicated market research reports or official statistics.
