The pandemic has had a huge impact on the SBM gaming and hotel group, with a decrease in turnover of about 50% compared with last year. Establishments were shut down in the Principality during the first half of the year, which is usually the SBM’s busiest period.
All of the SBM’s establishments were closed during the first lockdown, only the Hôtel de Paris and the Monte-Carlo Bay Hotel & Resort remained partially open with low occupancy rates. From 2 June 2020, when the Monegasque government authorized the reopening of restaurants and casinos, SBM establishments reopened gradually, with sanitary measures in place to ensure maximum safety for customers and staff.
The startling figures
For the period between 1 April 2020 to 31 March 2021, the SBM had a turnover of 336.9 million euros compared to 619.8 million euros the previous year. Gaming revenue fell by 115 million euros, or 48%. Hotel revenue fell by 175 million euros, or 62%. Rental revenue increased by 10 million euros, or 11%.
The rise in the rental sector (which includes hotel residences in Monte-Carlo Bay, Balmoral and Villas du Sporting) can be attributed to the renting of One Monte-Carlo apartments.
During the 78th Monaco Grand Prix, the occupancy rate of the group’s hotels reached 55% when the establishments were usually full during this same period, before the pandemic.
During a meeting on 27 May 2021, the Board of Directors of the Société des Bains de Mer approved the annual accounts for the 2020/2021 financial year, drawn up in accordance with international accounting rules and principles. The pandemic forced the Société des Bains de Mer to accelerate the implementation of a global restructuring plan, made particularly necessary due to a chronic deficit in its hotel, restaurant and casino activities. This restructuring work was carried out with success.
On 4 March 2021, the SBM announced the implementation of its cost reduction plan, which included: a voluntary resignation plan, open to employees over the age of 57, which 234 employees have already accepted.
A forced redundancy plan (limited to 2 people as of today). 7.5 million euros was also recorded due to the closure of the Sun Casino. The SBM has decided not to reopen this establishment. When the establishments closed, many members of the SBM qualified for the government emergency benefits (Reinforced Total Temporary Unemployment).