Weather
25 ° C
25°C
17°C
Sunny
Breaking News

0 Covid cases 20 June, 3 hospitalised, 1 in ICU, 34 home monitored, 2,478 recoveries, 33 deaths, 44 incidence rate, 57% eligible population vaccinated

SBM continues upwards trend in 2019-20 fiscal report

SBM continues upwards trend in 2019-20 fiscal report

By Cassandra Tanti - May 28, 2020

SBM revenue was up 18% last financial year, placing Monaco’s largest employer in a strong position to battle repercussions of the Covid-19 health crisis. Nonetheless, the group acknowledges a “substantial deterioration” in next year’s financial performance.

During a digital press conference joined by Monaco Life on Thursday evening, Société des Bains de Mer (SBM) President Jean-Luc Biamonti presented the results of the 2019-2020 annual report ending March 2020, and the SBM’s positive results for the second consecutive year.

He revealed that Société des Bains de Mer and its subsidiaries generated revenue of €619.8 million for the entire financial year 2019/2020 compared to €526.5 million in 2018/2019 – an improvement of 18%.

“This €93.3 million increase in turnover is the result of an improvement in revenues in all business sectors, recorded continuously throughout the financial year until the end of February,” said Mr Biamonti. “The last month of the fiscal year, however, was strongly impacted by the consequences of the Covid-19 epidemic.”

All of SBM’s casinos and restaurants were closed in mid-March when Prince Albert ordered the lockdown, followed by the Hermitage Hotel and the Méridien Beach Plaza. Only the Hôtel de Paris and the Monte-Carlo Bay Hotel and Resort remained partially open to accommodate customers, particularly permanent residents, but occupancy remained low.

It is estimated that SBM lost €15 million in turnover in the last month of the 2019/2020 financial year due to the impact of the pandemic.

SBM President Jean-Luc Biamonti during Thursday’s press conference, all rights reserved Monaco Life

Gaming

The gaming sector reported revenue of €239.8 million, compared with €222.7 million in 2018/2019. This growth was largely due to improved revenue from slot machines, which rose by 11% to €113.0 million for the financial year as a whole. Revenue from table games also rose by 5%.

Hotels

Hotel revenue was €284.3 million, compared with €253.7 million in 2018/2019. The increase has been attributed to the full opening of the Hôtel de Paris and the success of Coya.

Rents

This area saw the most significant increase in revenue for SBM, mainly due to the leasing out of new spaces at the Hôtel de Paris and in the One Monte-Carlo complex, and the gradual take-up of residential leases at the One Monte-Carlo complex.

The rental sector therefore reported revenue of €96 million, compared with €51.9 million previously.

Operating result

As a result of strong rental revenue, SBM Group was able to achieve an operating profit of €22.6 million, compared to an operating loss of -€9.6 million during the previous financial year.

Net income
Net consolidated profit was €26.1 million, compared with a profit of €2.6 million for the fiscal year 2018/2019, an improvement of €23.5 million.

In terms of financial structure, shareholder’s equity amounted to €649.4 million as at 31st March 2020, compared with €622.3 million at the end of the previous fiscal year.

Impacts of the Covid-19 epidemic

Mr Biamonti acknowledged that the Covid-19 pandemic has had a severe impact on the SBM Group’s business with the forced closure of most of its public establishments. However, the Group was able to retain most of its revenue from commercial and residential rental activities. “This serves to confirm that the diversification strategy adopted in recent years, to develop the Group’s real estate assets and rental business, was indeed justified,” said the SBM president.

But April to September is generally the strongest time of year in terms of business, so the Group expects a substantial deterioration in financial performance next financial year.

Mr Biamonti acknowledged that, given the rapidly evolving nature of the situation and the lack of visibility of the epidemic’s effects on its activities, SBM is not yet able to foresee the exact scale of this impact.

 

 

 

Related stories:

 

The SBM achieves positive annual results

 

 

shares
SHARE
Previous articleProperty sales over €10m increase by 64%
Next articleOceanographic Museum reopens with deals and loads of fun

daily

June 17, 2021 | Business & Finance

MEB brings economic powerhouse to Monaco

Cassandra Tanti

One of the world’s top forecasters, Christophe Barraud, has told an audience of Monaco entrepreneurs what he predicts the global economic recovery will look like in 2021.

0
June 16, 2021 | Business & Finance

Mixed bag economically for first trimester

Stephanie Horsman

The first quarter of 2021 was marked by the pandemic in Monaco, but not to the extent of the previous year, according to IMSEE’s latest report.

0
June 14, 2021 | Business & Finance

Focus on Italian investors in new MEB agreement

Cassandra Tanti

The MEB and the Italian Chamber of Commerce in Nice have signed an agreement that will provide members with new local and international opportunities as the recovery takes off.  

0
June 8, 2021 | Business & Finance

ASM partners with Sokin in three-season deal

Cassandra Tanti

AS Monaco has announced that it is the first club in League 1 to partner with Sokin, a FinTech service that’s already well established in the Premier League.

0