Monaco’s largest employer, Société des Bains de Mer, has reported revenues of €336.9 million in the year ending 1st March 2021 compared to €618.8 million the previous year, amid the company’s major restructuring and cost-saving plan.
The pandemic brought havoc to those in the hospitality industry, and the Société des Bains de Mer (SBM) was no exception. CEO Jean-Luc Biamonti announced the company’s financial statements to the press on Friday, after an annual Board of Directors meeting on 27th May.
Among the notable figures, SBM saw gaming revenues decrease by €115 million in the last financial year, equalling -48%. Meanwhile, hotel revenues reduced by €175 million, coming to a depressing -62%. The only bright spot was that rental revenues increased by a small but significant €10 million equalling a +11% gain.
The company also saw an operating loss of €103.3 million compared with a €22.6 million profit in the 2019/20 fiscal year. The consolidated loss was less severe, but still significant at -€79.1 million, as opposed to the previous year which saw a profit of €26.1 million.
Gaming and hotel losses are contributed directly to the forced closures that were periodicallynecessary as part of lockdown procedures throughout much of 2020 and into 2021.
The rental sector increase is being attributed mainly to new residential leases having been signed at One Monte-Carlo, though Monte-Carlo Bay, the Balmoral, the Villas du Sporting’s boutique and office lettings also contributed.
As a result, SBM has worked to reduce overhead in the form of operating and investment expenses, as well as accelerating their global restructuring plan. This led to employees going on furlough or paid leave throughout a good part of the year.
The restructuring plan, which was announced on 4th March, includes a voluntary redundancy plan for employees over 57-years-old, on the essential condition that these workers would not be replaced. Do date, 234 employees have signed up.
Additionally, a collective forced redundancy plan was put into effect. This is currently limited to just two people, with most of the staff departures targeted at certain departments for reasons of overstaffing or re-organisation to restore competitiveness. These individuals have been moved to alternative roles.
The restructuring has resulted in a net cost of €25.3 million.
Looking forward, SBM anticipates, with the implementation of the restructuring plan, a net saving of €18 million this year. These savings, along with other measures to bring costs more into line with seasonal fluctuations in activity, should give SBM Group a return to profitability, says the company.
SBM has also put in place financial measures that mean they are completely solvent. According to Mr Biamonti, they have roughly €90 million in ready cash for the unexpected or the unforeseen.
Photo of the Casino de Monte-Carlo by Monaco Life