The Ordinary General Meeting of shareholders of Monaco’s Société des Bains de Mer, held on Friday, September 22, heard that a slight improvement in revenue for gaming had helped the company’s overall performance for the current fiscal year.
Revenues in the hotel sector during the first quarter of the fiscal year, from April 1 to June 30, were broadly stable, SBM said.
In the fiscal year 2016/2017, revenues were €458.8 million compared with €461.4 million in the previous year. The decline in activity in the games sector over the full 12 months was partially offset by increases in the hotel and rental sectors.
The Group’s operating income for 2016/2017 remained at a deficit of – €32.8 million, compared with an operating loss of €31 million for the previous year.
Operating losses due to the reduced capacity of the Hotel de Paris are still in line with expectations, which anticipated losses of more than €50 million over the total duration of the works.
In addition, operating income was impacted by the price of new table games and automatic machines, which generated additional costs of €10.1 million in 2016/2017.
The Betclic Everest Group – in which SBM holds a 50 percent stake – benefited from a 16 percent increase in gross gaming revenue, with the opening of new markets and the favorable impact of the European Football Championship.
However, a sharp rise taxes and significant marketing costs had a negative impact on the overall income from gaming.