Tombola full-year turnover soars 20%

Tombola has reported a 20% year-on-year increase in full-year turnover following a “significant” increase in marketing spend, according to accounts filed with Companies House.

The online bingo operator recorded £59.5m in turnover for the year ended 30 April 2016, up from £49.8m compared to the same period the previous year.

Net profit remained steady year-on-year at just under £12m despite “significantly increased marketing costs” and the full-year impact of the UK gross profit tax.

According to a recent report by bingo affiliate WhichBingo, tombola’s TV advertising budget far exceeded its online bingo rivals in 2016.

The Online Bingo Annual Report 2017 revealed tombola spent £12.4m last year, compared to £8m at Gala Bingo and £6.8m at Mecca Bingo.

Tombola said in its annual accounts: “Group turnover has increased to £59.5m from £49.8m in the previous year as the group continues to thrive and grow its market share across the UK and Europe.

“The group is focused on the continual research and development of its products and invests much time and resource to ensure the highest quality of its product.”

Tombola’s operating profit fell slightly from £11.7m to £11.6m, while gross profit increased 2.3% year-on-year to £21.8m. Tombola said it also paid £24m in dividends during the 12-month period.

Last year, the Sunderland-headquartered firm won the Bingo Operator of the Year prize at the EGR Operator Awards and diversified away from bingo for the first time with the launch of tombola Arcade.

TombolaArcade.co.uk features a range of non-bingo games including slots and scratchcards, with customers able to stake from 5p to £1.

However, as the product launched mid-2016, turnover derived from tombola Arcade is unlikely to be included in the operator’s accounts for the year ended 30 April 2016.

In September, tombola announced plans to increase its Sunderland-based headcount by 26% as part of a strategy to double its turnover and workforce within five years.