Recently the Societe des Bains de Mer published results that were in the red. This company run by the state of Monaco manages luxury hotels and casinos in Monaco. Last June, the Chairman of its Administrative Council, Jean-Luc Biamonti confirmed after tax negative results of 33.2 million euros. Even if profits remain positive ( +0.4 million euros) from April to September 2012, this figure is disastrous when compared to that of last year for the same period which reached 5.3 million euros.On the 14 of September 2012 the Societe des Bains de Mer’s shareholders made their discontent known at the annual general meeting.
They consider it’s not normal that the share prices dropped 60% over three years and that they are no longer getting dividends. In response to these accusations the SBM explained that it had to deal with major expenses especially in the area of staff costs. In fact, the number of employees is high to respond to the needs of the clientele which visits the SBM venues. Moreover, the latter is known to pay its employees well and some positions are very well paid.The SBM trade unions believe that if the financial situation of the SBM has worsened that it’s mostly due to its investment in online gambling since 2008. In fact, the SBM invested 210 million euros in the Betclic Everest Group (BEG) and has a 50% involvement in Financiere Lov belonging to Stephane Courbit the ex-boss of Endemol and an astute businessman. BEG is now in a worrying situation due to a 43.2 million euro deficit for the period of April to September 2012. In one year its losses have doubled. Betclic was even forced to take action to limit the damage by letting a third of its staff go.The SBM is being careful and knows that the present climate isn’t very favourable for clients to its hotels and casinos. It hopes however that the situation isn’t too appalling and that it can re-launch its businesses.