SBM results supported by online gaming

Last week Monte Carlo SBM revealed its figures for 2009-2010.

Bernard Lambert and Jean-Luc Biamonti gave a press conference to report that although results were positive, SBM is still feeling the effects of the economic crisis. Consolidated sales fell by 6% from 400 m to 374.1 m euros. The net result fell from 40.6 m euros last year [1] to break even at 1.1 m this year.

Hotels

The hotel sector has suffered most, with 40% reservations only placed up to a week before. Lambert was optimistic that the recent fall of the Euro against the Dollar would lead to a pick up in the number of American visitors, which has risen to 2007 levels in the past 2 months.

Gaming

Results this year take into account the first full year of the smoking ban [2]. SBM seem to have fared better than neighbouring businesses in France and Italy.

Online gaming

An important strategic direction for the group following the acquisition of 50% Mangas Gaming in 2009 [3]. Although profits from the deal are not immediately realizable, the potential value is higher than the original investment. The company is working to increase market share and was well placed for the liberalization of the French online gaming market last month, when it obtained 4 licenses. Since the start of World Cup, profitability has been beyond expectation.

Other projects

The Monte Carlo Casino renovation was abandoned [4] and is being reviewed. However it will nonetheless undergo a refurbishment, since creating outside terraces is a priority. The idea of exterior gambling appeals to smokers and non-smokers alike. Another project being studied is a room dedicated to online betting.

Buddha Bar opened, last week, and the new erotic Cabaret will open 1st December.

A study is still being undertaken regarding the 2009 purchase of the Rascasse bar and restaurant. Perhaps a bar-restaurant with room on 1st floor for slot machines. It could be ready for Grand Prix 2011 if all goes to plan.

The installation of congress and meeting spaces under the Hotel Hermitage, and the transformation of Hotel Balmorel into residences are on course.

The Sporting d'Hiver project is in limbo. Its destruction has been authorised, and its future now rests with the Government, which is being careful not to tread on anyone's toes. A petition has been raised to save the building, and the Conseil National recently voted unanimously for measures to conserve and protect Monaco's national heritage. From SBM's standpoint, if there is no new building, the old one would remain as it stands, since a complete renovation is too expensive. If construction goes ahead, any new building's height would not exceed the Hotel de Paris. However the surface area would be bigger, taking over the space currently occupied by the Haagen Dazs garden ice-cream parlour. Inside, there are plans for a luxury shopping mall on the ground floor, a hotel residence, and offices. Once construction begins, SBM's administrative personnel who currently work in the Sporting d'Hiver would be moved permanently to another site.

Social relations

There are continuing negotiations between management and the unions following a strike during the Grand Prix. The problems arise from the rigid status of employees, especially those working in the casinos. They are trying to introduce more flexibility.

SBM : decreasing profits, but projects remain [5]

Sporting d'Hiver: destruction in view [6]

SBM draws in its horns [7]