Société des Bains de Mer et du Cercle des Etrangers à Monaco: Consolidated Results 2008/2009
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Société des Bains de Mer et du Cercle des Etrangers à Monaco: Consolidated Results 2008/2009
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Category: Europe - Monaco - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-06-22
(Period April 1st, 2008 – March 31st, 2009)
2008/2009 results down significantly compared with the previous year
Decline of 13% in Turnover due to sharp deterioration in the economic environment during the second half of the year and the smoking ban enforced on November 1st 2008, particularly in the gaming sector
Operating Result before depreciation down 43%
Net result of 40.6 million euros down 57% versus the previous year
At its meeting held on June 18th and 19th 2009, the Board of Directors of the Société des Bains de Mer closed the annual accounts for the year 2008/2009 drawn up in conformity to international IFRS regulations and accounting principles.
In millions of euros 2008/2009 2007/2008
Consolidated Turnover 400.0 457.6
Operating Result
before Depreciation 60.6 106.7
Operating Result 19.0 64.1
Financial Result 21.6 29.5
Net Result (Group share) 40.6 93.5
Earnings per Share (in €) 2.25 5.18
Operational performance affected by a difficult environment
After three years of strong growth during which revenues increased from 334.4 million euros in 2004/2005 to 457.6 million euros last year, the Group, which demonstrated good resistance in the first six months, found itself confronted in the second half of the year by operational conditions made particularly difficult by the worsening international economic crisis and the smoking ban applied in establishments in Monaco as of November 1st. These factors had an adverse impact on activity, and the Group thus records annual results, established on March 31st, 2009, down sharply versus last year.
The second half of the year shows a drop of 27% in turnover, whereas the decline was limited to 3% over the first six months.
Over the entire year, the Group’s Consolidated Turnover fell by 13% to 400.0 million euros.
The gaming sector, particularly penalized, reports turnover of 210.7 million euros, down 19% from the record level of 259.6 million euros registered last year.
The situation also affected the hotel sector, with revenues of 174.9 million euros, down 6% from the record level of activity in the year 2007/2008.
The Group's Operating Result amounted to 19.0 million euros versus 64.1 million for the previous year. The evolution of the gaming sector, marked by a decrease of 34.0 million euros, ie. 53% of its profitability, is the most unfavorable. As for hotel activities, they post a result which is down 5.4 million euros, ie. 42%.
Erosion of the financial result and a lower net result
Despite a gain of 14.8 million euros achieved through the sale of 200,000 shares of Wynn Resorts, Limited, and financial proceeds of over 6 million euros deriving from investment operations, the Financial Result dropped 27% to 21.6 million euros. The Group still retains a participation of 1,800,000 shares, equivalent to about 1.5% of the total shares of Wynn Resorts, Limited.
The Consolidated Net Result-Group share shows a sharp decline at 40.6 million euros compared with a profit of 93.5 million euros in financial year 2007/2008.
Trend in activity for the first few months of financial year 2009/2010
As a result of worsening market conditions, the Société des Bains de Mer and its subsidiaries have witnessed a beginning of the year in sharp decline compared to the previous year.
The uncertain and seasonal character of the Group’s activities makes it impossible to attempt any forecasts for the full year. The on-going international economic crisis and the lack of prospects for improvement over the next few months lead us to foresee a particularly difficult year 2009/2010 for the Group.
Under these circumstances, management of an even more rigorous character is essential.
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