SBM’s losing streak continues, group remains optimistic

SBM's CEO Jean-Luc Biamonti
SBM’s CEO Jean-Luc Biamonti

The Société des Bains de Mer, the controller of Monaco’s casinos and the dominant hotel operator in the Principality, has announced its annual results showing a continuation of previous trends.

CEO Jean-Luc Biamonti delivered the figures at a press conference at the Salle de Belle Epoque at the Hotel Hermitage Tuesday afternoon.

Overall, turnover fell from €461.4 million in the previous year to €458.8 million from April 1, 2016, until March 31, 2017. Once again, it was gambling revenues that dented SBM’s results, down six percent, largely due to a fall in profits for traditional gaming tables such as roulette. Electronic gaming machine income fell by a lesser amount.

On the other hand, the hotel sector has performed better, despite the reduced capacity of the Hotel de Paris as renovation work continues.

Rental income showed a nine percent increase over the year, largely offsetting the gambling losses. The increase in rental revenue was partly due to more space being available and including boutiques, the Monte-Carlo Bay residences and the new villas at the Sporting.

The operating deficit for the period was €32.8 million, up from €31 million in the previous 12 months. The consolidated net deficit was €36.4 million, up from €29.1 million. The Betclic Everest Group lost €4.2 million compared to a profit of €2 million in the previous 12 months, a further disappointment for the company.

Announcing the financial results on Tuesday, June 13, SBM said that preliminary results since April 1 this year show a slight improvement, and did not discount the impact of the events of July 14 in Nice last year.

French (21%), Russians and Eastern Europeans (13%), Americans (13%) and Italians (11%) are the most popular markets for SBM, which is hoping to further develop their Asian client base.

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