With all of its casinos closed for the first two months of the first quarter, Monaco operator Société des Bains de Mer saw its gaming division operating at 27 per cent less of its pre-pandemic level.
Gaming recorded a turnover of €45.1m for the past quarter against €9.6m last year, all establishments having been closed during the first two months of the year. Compared to the 2019/2020 financial year, activity remains down by 27 per cent given the health crisis and the travel restrictions in force.
SBM achieved a strong increase in turnover compared to that of the same period of the previous financial year. The consolidated turnover of the SBM Group came in at €110.9m compared to €45.1m previously, an increase of €65.7m. However, this achievement is 37 per cent lower than the turnover for the first quarter of fiscal year 2019/2020.
The company said: “The first quarter of fiscal year 2020/2021 was marked by the closure of all casinos and restaurants until June 2, 2020, in accordance with government decisions. Only the Hôtel de Paris and the Monte-Carlo Bay Hotel & Resort had remained partially open to accommodate customers, particularly permanent residents, but with low occupancy. On the other hand, the SBM Group retained most of its income from its commercial and residential rental activities. The establishments then gradually reopened in June and July. As the reopening of the Hermitage Hotel and the Monte-Carlo Beach Hotel took place at the beginning of July, these two establishments had not generated any turnover in the first quarter of the previous financial year.”
“The activity of the SBM Group is still strongly impacted due to the unprecedented nature of the health crisis, especially since the first half of the year, i.e. the period from April to September, is usually the period of greatest activity. Despite a financial performance which should improve compared to that of the previous financial year, the SBM Group expects a still significant impact on the activity of the 2021/2022 financial year, without it being possible to determine precisely the extent of it. A favorable evolution of the epidemic and the deployment of vaccination campaigns are two key elements for the resumption of travel and the gradual lifting of restrictions,” it added.
Hotel revenue stood at €35.5m compared to €10.8m for the same period of the previous fiscal year. Only the Hôtel de Paris and the Monte-Carlo Bay Hotel & Resort had remained partially open in April and May of the previous fiscal year to accommodate customers but with low occupancy. The restaurant outlets gradually reopened from June 2, 2020, with a reduction in capacity in order to comply with social distancing rules and under maximum security conditions for teams and customers. Given the travel restrictions and health rules still in force, as well as the limitation of access to establishments during part of the first quarter of the current financial year,
The SBM Group implemented a drastic reduction in operating expenses with a global restructuring plan resulting in savings of €18m per year with further controls on expenses providing savings of €25m. The SBM Group will be able to return to a level of profitability giving it the possibility of ensuring the investments necessary for its sustainability, as soon as the health crisis has passed.