Societe des Bains de Mer First Quarter Report: Rates Reduced by 17%

During the period from April 1 to June 30, the total consolidated turnover of SBM and its subsidiaries amounted to €218.4 million ($236.5 million). This growth occurred despite lower revenues in the gaming segment, which fell by 17% to €47 million.

Gaming revenue fell by more than €9 million compared to the same period last year, despite an increase in attendance. SBM pointed to unfavorable conditions during the three-month period as the main reason for the decline. This was the only segment to see a year-on-year decline in turnover.

The hospitality segment was SBM's most profitable in the first quarter, earning €130.3 million, representing 67.7% of the company's total turnover. This segment also saw the fastest growth, growing 17% year-on-year.

The rental and other segments also showed strong growth, growing 15% year-on-year. Turnover in these sectors amounted to €36.9 million and €8 million respectively.

Growth in hospitality, rentals and other activities was in line with SBM's expectations. The company pointed to the opening of the Amazónico restaurant in April as one of the factors behind this growth.

However, due to the unpredictability of gaming revenues, SBM cannot accurately predict how this segment will develop over the remainder of the 2024/25 financial year. Among the factors influencing the situation, the company noted a decrease in the number of gaming travel from Eastern Europe due to the war in Ukraine, which was announced by Chief Operating Officer Pascal Kamiya at The Huddle event at ICE 2023.

During the quarter, SBM entered into a partnership with Crystal Cruises, resulting in the return of onboard gaming for Crystal Symphony's Chairmen's Cruise and Crystal Serenity. These ships, including future non-expedition vessels, will host the one-of-a-kind Casino de Monte-Carlo at sea. The maiden voyage of Crystal Symphony's Chairmen's Cruise is scheduled for November.

Despite the decline in the gaming segment, SBM showed overall growth in turnover due to the successful development of the hotel and rental business. The partnership with Crystal Cruises and new hospitality initiatives will enable the company to continue to strengthen its position in the market despite current challenges.