With both main stage bingo and machines performing strongly for Majestic Bingo in 2017, the operator will continue its strategy of refurbishments and acquisitions for the years ahead, all while developing new customers and fresh gaming products.
Majestic Bingo has posted a one percent growth in overall customer stake money for 2017, with customer spend per head increasing from £16.99 to £18.23.
The third largest retail bingo operator in the UK reported that “strong control on gross margin and focus on prize board management has grown” the company’s turnover after prize money by four percent, an additional three percent above total stake money growth.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased four percent for Majestic, with the operator successfully absorbing the additional £250,000 wage impact as a result of the introduction of National Living Wage and inflationary cost pressures. Despite managing to increase customer spend and keep profit stable at £1.1m for the year, Majestic director Mark Jepp acknowledges in the financial report that the retail bingo climate remains challenging.
“Economic conditions remain difficult and impact our customer base along with increased competition from both in-home and out of home entertainment options,” he explained, before reassuring that Majestic “remain resolute in offering customers a great experience with fantastic service”.
Indeed, Jepp believes 2017 held many accomplishments for Majestic, with both main stage bingo and machines providing strong performances, while “new gaming concepts” were trialled to ensure further opportunity in the years ahead.
“We have successfully improved our main stage bingo and MCB products since our formation and look to consolidate performance of these revenue streams moving forward in to 2018,” he continued. “Fruit machines provide a strong opportunity to further grow revenue to bring us closer to sector spends.We are trialling new gaming concepts which provide an enhanced customer experience and provide exciting opportunities. F&B [food and beverage] facilities have improved with new facilities enabling more extensive menu offer. We have continued maintaining our long term supplier relation- ships to proactively manage costs.”
One of the main costs for Majestic continues to be taxation, with the group paying out excess of £5.1m in tax, levy, social security, PAYE and licencing costs, accounting to almost one third of the operators net turnover. However, investments of over £4m since January 2014 mean that Majestic can continue to develop sites and pursue acquisition opportunities to increase the size of its estate.
This strategy, along with the development of “new customers” and “new gaming products”, leave the Majestic board “confident that the group’s strategy will continue to deliver results”in years to come, concluded Jepp.