The year 2021/2022 was marked by the ongoing impact of the Covid-19 pandemic, leading to a dip in results for Société des Bains de Mer. However, despite the challenging circumstances, the renowned European casino operator showcased resilience in H1 2022/2023. This article delves into the impressive financial performance of Société des Bains de Mer during this period, highlighting key revenue and profit figures, as well as examining the factors contributing to its success.
Overcoming Pandemic Challenges:
Despite the prevailing lockdowns across European nations, Société des Bains de Mer managed to generate €311.4m ($327.4m) in revenue for H1 2021/2022, surpassing expectations considering the circumstances. This figure, although lower than the pre-pandemic H1 2019/2020 revenue of €408.6m, indicated a resilient recovery for the company.
Strong Growth in H1 2022/2023:
Société des Bains de Mer experienced a remarkable rebound in H1 2022/2023, reporting €432.3m in revenue, surpassing the figures from both the previous year and the pre-pandemic era. The operating profit also witnessed a substantial increase, rising to €91.9m, compared to €50.1m in the first six months of the previous year and surpassing the pre-pandemic H1 2019/2020 profit of €69.4m.
Impressive Casino Income:
The standout performance of Société des Bains de Mer was exemplified by the Casino de Monte-Carlo, which reported an impressive income of €918.8m in H1 2022/2023. This marked a significant upturn compared to the meager €45.6m generated during the same period in fiscal year 2021/2022.
Revenue Growth by Segments:
Société des Bains de Mer witnessed remarkable revenue growth across its various segments. The hotel services segment experienced the greatest surge, with hotel revenue reaching €235.4m in H1 2022/2023, reflecting a 68% year-on-year increase. The gaming segment also witnessed growth, albeit not as significant, with revenue rising from €112.6m in H1 2021/2022 to €131.3m in H1 2022/2023.
Shedding of Betclic Everest Group Stake:
Société des Bains de Mer’s decision to sell its 47.3% stake in Betclic Everest Group in June 2022 impacted the financial results. While this contributed to a slightly worse negative financial result of -€2.3m in H1 2022/2023, the sale resulted in an “exceptional” profit of €813.5m for the operator, as reflected in the financial statement. Additionally, Société des Bains de Mer received a positive share in revenue amounting to €15.6m for the first six months of 2022/2023.
Enhanced Cash Flow and Investments:
The positive results for Société des Bains de Mer translated into increased cash flow, with the operator experiencing a rise from €82.4m to €116.3m in the first six months of the fiscal year 2022/2023. This growth in cash flow was instrumental in the company’s ability to invest €70.5m during the same period, showcasing its commitment to ongoing investment programs.
Lingering Debt Challenges:
Despite the progress made, Société des Bains de Mer continues to face challenges associated with the Covid-19 pandemic. The operator’s debt, as of September 30, 2022, stood at €470.6m, a significant increase from the €30m debt in the previous year. However, the sale of its Betclic stake injected much-needed cash into the company, enabling it to sustain its investment programs.
Société des Bains de Mer’s H1 2022/2023 results reflect a commendable rebound from the challenges posed by the Covid-19 pandemic. The operator showcased resilience in generating impressive revenue and profit figures, particularly in the Casino de Monte-Carlo segment. The shedding of its Betclic stake, while impacting short-term financial results, ultimately contributed to exceptional profit. With enhanced cash flow and ongoing investment programs, Société des Bains de Mer remains dedicated to its long-term growth and recovery from the pandemic’s aftermath.