Monaco casino operator Société des Bains de Mer (SBM) has reported a 27% year-on-year increase in revenue to €556.5 million (US$605 million) for the nine months to 31 December 2022, with gains across all key sectors.
SBM, which counts the government of Monaco as its majority shareholder, is also part-owned by Macau’s Galaxy Entertainment Group, which acquired a 5% stake in the company in 2015 and two years later announced an ongoing strategic partnership between the two companies aimed at developing and operating entertainment businesses, including IR projects, across the Asia Pacific region.
Its results for the first nine months of the financial year include a 5.4% increase in gaming revenue to €174.9 million (US$190 million), while hotel revenue climbed 72.1% to €285.7 million (US$310 million) and rental revenue by 6.5% to €93.7 million (US$102 million).
The consolidated result was also 4% higher than the same period in 2019, despite a slow end to the year.
For the December 2022 quarter, consolidated revenue fell slightly compared to the prior year period to €124.1 million (US$135 million) but was well down on the €224.5 million (US$244 million) reported for the June quarter and €207.8 million (US$226 million) in March.
Gaming revenue in the December quarter fell 18.5% year-on-year to €43.6 million (US$47 million).
SBM said the quarter was “naturally weaker” than in previous months due to seasonality but revealed it remains on track to record its most profitable year ever.
“If the activity of SBM is part of the context of a gradual exit from the health crisis and remains dependent on the evolution of the geopolitical context with the war situation affecting Ukraine and the crisis with Russia, the remarkable results observed during the first six months should enable a further strong increase in operating income to be recorded in 2022/2023,” the company said.
“Given the information available, we can envisage achieving an operating profit higher than that of the record financial year of 2007/2008. During this financial year, SBM recorded an operating profit of €64.1 million (US$70 million), which has never been equalled since.”
