SBM Q1 gaming revenue jumps but remains 27% below 2019

Gaming revenue increased from €9.6m to €45.1m - a 370.0% jump. The increase was largely due to the fact that SBM's casinos were closed until 2 June, 2020, giving them less than a month to bring in revenue. However, this figure was still 27% below Q1 of 2019/20.

Hotel sector revenue more than tripled to €35.5m, whilst rental sector revenue experienced a slight 16.8% increase to €28.6m. Revenue from other sources amounted to €4.3m. This was aided by the re-opening of casinos and restaurants this year, as only Hôtel de Paris and the Monte-Carlo Bay Hotel & Resort were able to remain partially open in 2020.

In terms of cost-saving measures, the business expects to save €18.0m after implementing q global restructuring plan. SBM projects that this, coupled with “actions undertaken elsewhere to improve and adapt the level of charges to seasonal fluctuations in activity”, will reduce its operating expenses by up to €25.0m.

After taking out a €150.0m loan (repaid in installments of €26.4m), and establishing a debt securities program to the tune of €105m, and receiving €30m worth of dividends from its BEG subsidiary, SBM estimates it has cash reserves of €120m.

A statement from SBM said:  “The activity of the SBM Group is still strongly impacted due to the unprecedented nature of the health crisis, especially since the first half of exercise, which is from April to September, is usually the period of greatest activity.

“Despite a financial performance which should be improving compared to that of the previous year, the SBM Group expects a still significant impact on the business2021/2022, without it being possible to determine precisely its extent. A favorable evolution of the epidemic and the deployment of vaccination campaigns are two key elements for the resumption of travel and the gradual lifting of restrictions.”