With revenues reaching 458.8 million euros, the results of the Société des Bains de Mar are still too poor for the 2016-2017 period. “We knew that the construction would create difficulties for the society. We take responsibility for the consequences”, admitted the President elect Jean-Luc Biamonti Tuesday night as he presented the consolidated results for the company in 2016-2017.
There is a deficit of 32.8 million euros in the operational result. The consolidated net profit shows similar results (-36.4 million euros versus -29.1 million euros in the previous year). The Betclic Everest Group also suffered a loss (-4.2 million euros) that is experiencing great competition in France. This year again, the SBM invested 119 million euros on their construction site in Monte-Carlo.
“We have just experienced the most challenging two years for our society”, explained Jean-Luc Biamonti. He is optimistic and believes that profits will improve. “The month of April and May 2017 showed better results. Our efforts are starting to pay off”.
Priority to the games sector
Looking at it more in detail, the hotel industry resists and is even improving compared to the last year (218.5 million euros versus 213 million euros of revenue), due to an increase in profit at the Hotel de Paris and the Monte-Carlo Bay. Also because many restaurants now give fixed salaries, causing a rise of 4 million euros in revenue. The rental sector is also improving of 9%.
Game revenue has suffered a 6% loss (201.7 million euros). This sector has suffered the most, especially gaming tables (-9%) where there are significantly less clients. “A severe drop”, according to the president who is now giving priority to the games sector, “many initiatives have been put in place to promote Monaco, like the surreal dinner in the Casino that allowed us to get back in touch with clients who weren’t coming anymore”.
In terms of clients, French are the main source of clientele (21%), followed by Russians (13%), Americans (13%) and Italians (11%).
The aim is to tap into the Asian clientele. Employees of the game sector have been trained at calculating gains and losses, a technique called “rolling”, a technique preferred by Asian clients and not as used in Europe. Finally, the partnership with the huge Chinese company, Galaxy, aims to bring Asian players to Monaco.
The Hotel de Paris’ Rotonde back in business in July
Hopes of opening the Rotonde for the 2017 Grand Prix had to be abandoned. Although some rooms and the Grill are open, construction took two months more than expected, due to complications with the parquet and marble placing. “We are doing all we can to ensure that these two extra months won’t impact the projects final finishing date on the 31st of December 2018. We cannot lose anymore time”, said Jean-Luc Biamonti.
The entirety of the Rotonde should open beginning of July, enough time for the construction on the lobby side, of the American Bar and the rooms facing the Casino Square. The façade will also need to be covered for some time. Regarding the neighbouring construction site of One Monte-Carlo, the big project is progressing steadily. For now, the marketing teams have already rented out almost all the spots that will make up this new centre in Monaco. “All the tenants have already signed for these new spots and have even expanded their surface area and there will be even more newcomers “.
For the Hotel de Paris’ future courtyard, future shops have already been determined. Marketing for the residential part of the complex will begin at the end of the year.
“We have however already rented out one of the penthouses to an interested individual wanting to move to the Principality and who really wanted to rent out this area”, continued Jean-Luc Biamonti.
The two last floors of the office building have also already been reserved.
Jimmy’z is back in business on the 29th of June
The club was closed last year as it underwent important construction projects for its reopening on the 29th of June, before closing again for the second phase of construction this coming winter. During that time, the group decided to set up a ‘pop-up club’ during the Grand Prix in the Salle des Palmiers. “We wanted our brand to be present during these four days and we made the right move when we invited Bruno Mars, as it brought in great income”, highlighted Jean-Luc Biamonti. The SBM calculated an estimated revenue of 1.2 million euros. “The first night, we made 23 000 euros… At the end of the four nights, we reached a total of 1.8 million euros. This proves that the Jimmy’z brand is still really strong”.