Société des Bains de Mer gaming revenue down 68.2% in Q1 of 2020-21

The business made €168.8m in total revenue over the three months to 30 September, 58.5% less than in 2019-20.

The operator said that after its properties reopened in June, revenue remained significantly below 2019-20 levels. “This decrease is mainly linked to the closure of all establishments over the first two months of the year, but also to lower revenues since June compared to the same period of the previous financial year given the health crisis and the restrictions in effect,” SBM explained. Slot machines were the most resilient part of SBM’s gaming operation and made up a majority of the operator's €48.1m in gaming revenue. However, revenue for the vertical still fell 51.1% to €30.8m Table games brought in €15.2m, down 80.7%, while other gaming activities brought in €2.1m, down 76.7%. Of SBM’s overall revenue, hotels were the largest source at €71.1m, while rentals brought in €51.1m. Other income came to €2.8m. SBM’s expenses, however, drastically outstripped revenue, despite a 55.7% decline to €211.8m. The Société paid €14.7m in costs of sales, down 63.6%, and €87.8m on staff costs, down 42.4%. Other external costs fell 55.0% to €38.3m while gaming and sales taxes declined 64.7% to €8.0m. Depreciation charges, however, increased by 45.4% to €49.4m, while other expenses also grew - by 115.2% to €13.5m. This resulted in an operating loss of €43.0m, a sharp drop from the profit of €69.4m it recorded in 2019-20. After losing €3.6m in interest costs but gaining €5.6m in income of companies in which it holds a 50% stake - such as Betclic Everet - SBM’s consolidated net result came to €41.1m, after having made a profit of €66.8m the year prior.

In October, SBM announced that it would implement cost-cutting procedures, including redundancies, in an effort to save around €25m because of the effects of the novel coronavirus.