There is cause for optimism at Majestic Bingo as recently released accounts show across the board progress made in 2016, and a focused strategy to continue driving performance going forward.
Majestic Bingo has released its full 2016 accounts which not only show positive progress made across the board, but highlight the resilience of the UK bingo market, and diligence of those operating within it.
Mark Jepp, director at Majestic, spoke of such positivity within the report: “We are pleased to continue developing our clubs and achieving growth across all our KPIs. We have achieved 6 percent growth in overall customer stake money during the financial year. Strong control on gross margins and prize board management has grown turnover after prize money by nine percent, a full three percent above total stake money growth.”
The accounts show before prize money grew from £33.6m to £35.8m, an increase of £2.2m, whereas post prize money only increased £1.3m from £14.6m to £15.9m, indicating that whilst player spend was up for the year, so was overall pay out.
Such combined results would indicate wholesale positivity for the brand as players saw more rewards for their considerably increased pecuniary efforts, with average spend per head up to £16.99 from £16, an increase of more than six percent.
Jepp commented how machine strategy has been a particular boon for the company, as the wider trend of bingo hall diversification shows no sign of slowing.
“We have invested in new fruit machines and content systems which, along with the recruitment of dedicated machines managers, has contributed to machine growth of 5 percent. Further growth will be achieved in 2017 as we consolidate the improvements made, coupled with initiatives to revise training and promotion,” he said.
Considered machine placement in bingo clubs is not only a boost for monetary intake but a great asset in terms of customer retention.
The bingo player is a historically social one, and the increased ability of premises to offer a broader experience rich with amenities and diverse play options can elevate clubs to true leisure destinations, in turn improving inhouse stay time and user engagement.
Majestic also saw positive results from wider club investment into new other products and refurbishments, designed to refine customer experience and provide a consistent admission base.
In all this totalled £3.6m in the trading period, with a minimum of £0.5m slated for investment in 2017.
Outside of its current portfolio of clubs, the company highlighted the development of new customers in the marketplace, and the pursuit of acquisition properties to increase the Majestic estate as two main strategies.
This reinvestment on the back of current performances only serves to highlight an endemic positivity within the group, and industry as a whole.
The report further reads gross margin levels will be improved in the coming year through aforementioned strategy points and states with confidence that this will deliver results for customers, employees and shareholders alike.