Operator News
SBM’s profit swings spectacularly from €5.1m loss to a positive €30.3m
By Phil - 29 May 2024
Monte Carlo casino operator Société des Bains de Mer saw its revenue grow by six per cent to €704m, driven by strong summer activity in the Resort, rising average daily rates and an occupancy rate of nearly 100 per cent.
Profit swung to a positive €30.3m compared to a loss of €5.1m for the previous year. This change is mainly due to an increase in income from financial assets held, including dividends received from the stake in FL Entertainment for an amount of €15.3m, income from investment activities (financial assets and cash) and a decrease of €3.3m in financial expense related to gross financial debt, with the amortisation of loans taken out in January 2017, the final maturity of which was repaid in January 2024.
Operating income increased by €1.4m to €73.6m and net income was largely positive at €103.9m, reflecting the solidity of the S.B.M. Group’s financial model. The figures were boosted by the acquisition on October 3, 2023 of the Palace des Neiges in Courchevel 1850 and reopening of the Café de Paris on November 14, 2023.
Stéphane Valeri, Chairman and Deputy of the Société des Bains de Mer, said: “We are satisfied with the high level of performance of our group. These results confirm the solidity of our business model, which is based on the complementarity of our activities. Whether it is gaming, hotels and restaurants or rental activity, each sector contributes to the growth in turnover, with convincing synergies.
“The new governance of Monte-Carlo Société des Bains de Mer, as part of the reorganization initiated at the beginning of the financial year, is undeniably having a positive impact on our business, while taking into account the establishment of two new divisions, international development and real estate development, which will reap the benefits of their investments in the medium term.”
“This result is in line with the previous one and validates the relevance of our offers and the strength of our positioning, in a highly competitive market.”
Hotel revenues were up six per cent to €345.1m, thanks to a particularly successful summer season, a favourable trend that also extended into the second half of operations. Gaming revenue was up three per cent to €221.3m, with the increase in automatic machine revenue and related activities of four per cent and 21 per cent respectively offsetting a slight decline of two per cent in table games revenue,
The operator added: “The S.B.M. Group’s activity in the first two months of the new 2024/2025 financial year is fully in line with that observed in the 2023/2024 financial year, reinforced by the opening of the Amazónico restaurant on April 4, 2024 and the full-year effect of the opening of the Café de Paris Monte-Carlo brasserie at the end of 2023.”
“The S.B.M. Group’s business model is solid and diversified. However, the gaming activity is dependent, over a short period of time, on its random nature. This hazard does not allow us to make forecasts for the entire 2024/2025 financial year.”