Belle net income declines almost 70% on pandemic restrictions, Taal eruption

LESSOR and City of Dreams Manila co-licensee Belle Corp. reported a net income of P891.7 million last year, declining nearly 70% from P2.92 billion previously due to pandemic restrictions and the Taal volcano eruption.

“Belle’s positive operating result for 2020 was achieved in spite of economic headwinds caused by the COVID-19 (coronavirus disease 2019) pandemic, as well as by the Taal Volcano eruption in January 2020 that affected its real estate operations in Tagaytay City and Batangas,” the company said in a regulatory filing on Tuesday.

Total revenues also went down by 44% to P4.17 billion from P7.47 billion due to the pandemic.

“All of the business units of the company experienced decline in revenues as a result of the COVID -19 pandemic,” Belle said.

Gaming operations at the City of Dreams Manila were temporarily suspended beginning March 16 to comply with government restrictions and was “substantially limited” for the rest of the year.

Share in gaming revenues of Belle subsidiary Premium Leisure Corp. (PLC) from the resort and casino fell by 79% to P635.2 million from P2.98 billion.

PLC also owns 50.1% of Pacific Online Systems Corp., which is the lessor of online betting equipment to the Philippine Charity Sweepstakes Office. Pacific Online recorded a 67% drop in revenues to P328.4 million from P989.9 million.

Meanwhile, revenues from the real estate operations of Belle fell by 8% to P3.21 billion from P3.50 billion in the previous year. Some P2.66 billion were from the lease of the land and buildings of City of Dreams Manila to Melco Resorts and Entertainment (Philippines) Corp.

Sales and property management activities from Belle’s Tagaytay Highlands complex were affected by the pandemic and the Taal volcano eruption, leading to revenues of P546.5 million in 2020 from P832.3 million in the previous year.

Belle Corp. shares at the stock exchange went down by 0.63% or P0.01 on Tuesday to close at P1.58 apiece. —