Buzz Bingo has delivered another year of strong revenue growth, but rising employment costs, higher gambling taxes and a major impairment charge have seen the company’s pre-tax losses more than double to around £65m.
Buzz Bingo increased group revenue by 11% to £241.4m in the 12 months to January 2026, with growth across its UK bingo clubs and online operation. This, despite a reduction in the number of clubs from 79 to 76. However, underlying EBITDA fell by around 6% to £39.2m, while the pre-tax loss widened from roughly £33m to approximately £65m.
The results show a growing customer base and continued investment in the estate, alongside higher employment costs and a tougher tax environment for online gambling.
Retail and online revenue both rise
Importantly, retail remains the main source of income, with bingo club revenue increasing 11% to £192.3m. Online bingo, slots and casino revenue also rose 11% to £49.1m, compared with £44.2m the previous year.
Like-for-like retail admissions reached around 4.9 million visits. Encouragingly, the company welcomed approximately 190,000 new club customers, around half of whom were aged 35 or under. Customers aged under 25 increased by 16% during the second half of the year.
CEO Dominic Mansour said bingo was attracting more younger consumers:
“More Gen Zs and millennials are embracing bingo as a fun, affordable night out without the costs that often come with an expensive night out drinking.”
EBITDA falls despite higher revenue
The gap between sales and underlying profitability is one of the main concerns in the results.
Underlying EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), declined from £41.8m to £39.2m, despite revenue increasing by around £24m. The EBITDA margin fell to roughly 16.2%, compared with about 19.2% the previous year.
Higher operating costs, particularly employment, were a major factor. Buzz employed 2,229 people, while staffing costs rose 17% to approximately £61.4m. The company attributed the increase to higher employer National Insurance contributions and the rise in the National Living Wage.
Pre-tax loss reaches £65m
What is concerning is that Buzz reported a pre-tax loss of approximately £65m, compared with around £33m the previous year.
The statutory result includes depreciation, finance costs and impairment charges that are excluded from underlying EBITDA. One of the largest items was an £18.5m goodwill impairment, following a reassessment of the business’s future cash flows.
The charge was linked partly to the impact of higher Remote Gaming Duty on the online operation.
Buzz Bingo results at a glance
Revenue: £241.4m, up 11% from approximately £217m last year
Retail revenue: £192.3m, up 11% from approximately £173.2m last year
Online revenue: £49.1m, up 11% from £44.2m last year
Underlying EBITDA: £39.2m, down 6% from £41.8m last year
Pre-tax loss: approximately £65m, compared with a loss of approximately £33m last year
Goodwill impairment: £18.5m, compared with no equivalent impairment charge highlighted last year
Clubs: 76, down from 79 last year (three fewer clubs, a 3.8% reduction)
Employees: 2,229, compared with approximately 2,200 last year
Staff costs: £61.4m, up 17% from approximately £52.5m last year
Operating cash generation: approximately £40.7m, compared with approximately £42m last year
Interest-bearing borrowings: approximately £322.4m, compared with approximately £320m last year
Net liabilities: approximately £256.5m, compared with approximately £191m last year
New retail customers: approximately 190,000, compared with approximately 170,000 last year
Under-35 share of new retail customers: around 50%, compared with approximately 45% last year
Online customer growth: approximately 18%, compared with approximately 15% last year
New digital customer growth: approximately 30%, compared with approximately 25% last year
Modernisation programme: £25m, compared with no equivalent multi-year programme disclosed last year.
Remote Gaming Duty hits online outlook
Remote Gaming Duty increased from 21% to 40% from April 2026. Although the accounts cover the period before the new rate took effect, Buzz included the expected impact in its forecasts.
The resulting reduction in projected cash flows led to the goodwill impairment. This is an accounting adjustment rather than an £18.5m cash payment, reflecting a lower expected future value for part of the business.
Online growth continues
Buzz’s digital operation generated £49.1m of revenue, up from £44.2m. New digital customer numbers increased by around 30%, while the overall online customer base grew by approximately 18%. Like-for-like online net gaming revenue rose by around 9%.
The company is increasingly using its clubs to support online customer acquisition rather than relying solely on standalone digital marketing. This omnichannel strategy allows customers to move between the retail and online businesses.
Mansour said:
“Our omnichannel strategy places Buzz in a unique position in the market.”
Club investment attracts younger customers
Buzz refurbished seven clubs during the period. The upgraded venues reportedly generated admissions around 20% higher than the rest of the estate.
The company also introduced more than 10,000 electronic bingo terminals, alongside self-service kiosks, improved Wi-Fi and digital membership technology.
Buzz secured £25m of funding from Barclays for a multi-year modernisation programme that began in 2025. The investment covers gaming terminals, digital infrastructure, interiors, food, drink and entertainment.
Borrowings and finance costs remain high
According to the results filed with companies house, Buzz had approximately £322.4m of interest-bearing borrowings at the end of the period and reported net liabilities of around £256.5m.
The group generated approximately £40.7m from operating activities, showing that the underlying business continues to produce cash. However, net finance costs of approximately £58m placed significant pressure on the statutory result.
Intermediate Capital Group remains the majority owner, while Barclays is supporting the modernisation programme. Buzz’s financing arrangements were extended in 2025, providing additional headroom for investment.
Bingo Duty abolition provides retail relief
Bingo Duty was abolished from April 2026, improving the economics of Buzz’s land-based clubs by removing a tax previously paid to the Treasury.
That benefit is partly offset by the higher Remote Gaming Duty applied to online gambling. The contrasting tax changes could make the retail estate even more important to Buzz’s strategy as the clubs generate revenue from admissions, bingo, food, drink and gaming machines while also providing a route to acquire online customers.
Growth comes with a higher cost base
Buzz’s latest results show strong customer and revenue growth in both its online and offline activities, but weaker underlying profitability.
Revenue, retail sales and online sales all increased by 11%. Admissions rose, younger customers became more prominent and refurbished clubs outperformed the wider estate.
At the same time, EBITDA fell, staffing costs rose 17%, finance costs remained high and the pre-tax loss nearly doubled. The online business also faces a heavier tax burden, reflected in the £18.5m goodwill impairment.
The next challenge is turning customer growth and club investment into sustainable profit while managing labour, financing and gambling costs.
Encouraging, but challenges lay ahead
Taken together, the results present a mixed but potentially encouraging picture for Buzz Bingo. The business is clearly growing, with higher revenue, increased admissions, a significant number of new customers and evidence that investment in modernised clubs is paying off. This, despite a slightly smaller estate than last year.
However, that growth is being achieved against a much higher cost base, substantial borrowing and significant finance costs, while the online operation faces a tougher tax environment.
With Bingo Duty now abolished, Buzz has an opportunity to improve the performance of its retail estate, but the results underline that turning its recent customer and revenue growth into sustainable bottom-line profit remains the key challenge for the business.
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