For the year ended 30 April 2020, Tombola’s sales increased 15.0 percent to £120.1 million (€139.0 million/$165.1 million), but profit fell due to higher personnel costs.
In Tombola’s primary markets of the UK and mainland Europe, about six weeks of lockdowns saw all bingo halls closed.
Regulus Partners, a gambling consultancy firm, reports that the UK contributed about 60% of the figure, or £72.0 million.
Tombola’s sales costs increased by 19.7% to £85.3 million, resulting in a gross profit of £34.7 million, up 4.3 percent.
The operator then charged £22.7 million in operating costs, an increase of 10.8%. Wages and salaries costs increased 13.3 percent to £15.3 million, while total payroll costs increased 12.8 percent to £17.6 million.
This resulted in a 6.7 percent drop in operating profit to £12.0 million.
Interest revenue fell 87.2 percent to £50,000, and interest costs increased to £33,000.
It paid an additional £2.7 million in tax, an increase of 35.1 percent. Tombola’s overall tax bill was £3.0 million, with £1.5 million from UK income tax, £1.1 million in changes, and £468,000 in overseas corporation tax deferred.
Tombola made a profit of £9.4 million after these expenses. This was down 16.6% from the previous year.
Tombola’s stringent player safety conditions, which include a £500 weekly deposit limit, could provide a peek into a potential future for gambling in the UK, according to Regulus.
“While this model works incredibly well for Tombola and helps to maintain a safer gambling atmosphere ‘by product,’ it also points to the fact that, even in a ‘softer’ product range like online bingo sites, less limited products drive the vast majority of addressable consumer revenue,” it said. “Tombola’s business model serves as a litmus test for tough product restrictions in the UK and elsewhere: it may attract a large number of consumers, but it does not attract a large number of revenue streams.