SBM, owners of Monaco's famous Monte Carlo Casino, have a plan to reduce costs and increase profits

Yesterday’s announcement revealed good news for unions, with no job-cuts in the pipeline. However, in an effort to reduce running costs, certain positions within Société Des Bains de Mer (SBM) will not be renewed. “With a three-year recovery plan, we expect to not replace those retiring,” said Managing Director Jean-Louis Masurel.

“An early negotiated retirement plan should interest some 50 people.”

According to Masurel, personal costs currently represent 54 per cent of SBM’s turnover.

Last September, the company announced that it would withhold dividends for the 2010/2011 fiscal year, a move prompted by a net-loss of 17.3 million euros on a consolidated turnover of 361.7 million. It is the first time the group has turned in negative results since 1996/1997. Even in the gloomy economic climate of 2009/2010, SBM registered a small net profit of 1.1 million euros.

To reverse the decline, there will be four areas of development that are based on: quality, attracting new customers (including Russia and China), adapting to new customer service, and creating new “centres of attraction”.

Cassandra Tanti