Buzz Bingo says it is in advanced talks to buy Merkur bingo rooms in Cricklewood and Northampton, two of the biggest in the UK.
The move follows good performances this year, with revenue growing by 47% in October in its first full trading month post-Covid, resulting in a gross profit of £137m ($167m) and revenue of £195 million. In 2023, the bingo brand gained retail revenue by 5%, online revenue by 31%, and EBITDA by 14%.
Buzz Bingo has also recently announced that it will relocate its digital company to Gibraltar.
The two clubs have been in operation for more than 25 years. The Cricklewood club, in particular, accommodates 410,000 players per year, averages 3,500 winners per month, and holds the Guinness World Record for the largest single bingo house prize. This will be the largest facility in Buzz Bingo's portfolio.
Bingo is becoming increasingly popular among young people in the UK, as seen by Mecca Bingo's recent initiatives, which include free line-dancing sessions and Loose Women-themed scratchcards created in collaboration with ITV. This was supported by Buzz Bingo's October report, which revealed that half of its new retail consumers were 35 or younger.
According to Buzz Bingo CEO Dominic Mansour, "Bingo in the UK is having a renaissance."
Regarding the acquisitions, Mansour stated: "Following a time of stabilising for the firm, it is currently prospering, and we are happy to be acquiring these two leading bingo clubs after a year of outstanding success. With bingo demand increasing, Buzz Bingo is setting the company for accelerated expansion, which is the primary reason for our choice to relocate our digital operation to Gibraltar."
It should be noted that the bingo brand has had some issues this year, with the Advertising Standards Authority (ASA) ruling in January that its Halloween campaign violated advertising codes. However, Buzz Bingo collaborated with Future Anthem later that month to add more customisation options to its products.
