Belle almost doubles first-quarter profit to M due to COD Manila
Belle Corporation almost doubled its consolidated net income to R783 million in the first quarter of 2017 from the R413 million earned in the same period last year.
Excluding extraordinary items, principally a capital gain of R23 million on the sale of 1.7 million shares of SM Prime Holdings, Inc. during the 2017 period, Belle’s recurring net income of R760 million for the first quarter of 2017 was higher by 84 percent over recurring net income for the first quarter of 2016 of R413 million.
Belle said in a disclosure to the Philippine Stock Exchange that its operating growth in 2017 was fueled primarily by growth in its revenues from City of Dreams Manila.
Its share in the gaming income of City of Dreams Manila, through its 78.7 percent-owned subsidiary, Premium Leisure Corporation (PLC), more than doubled to R722 million in the first quarter of 2017 from R349 million in the first quarter of 2016.
This was attributable to the continued growth of gaming operations at City of Dreams Manila. PLC has an operating agreement with the Philippine affiliate of Melco Resorts and Entertainment Limited (Melco) that accords PLC a share of gaming revenues or earnings at City of Dreams Manila.
Belle also realized increased revenues from its real estate businesses. Total real estate-related revenues increased by 3 percent, from R657 million in the first quarter of 2016 to R680 million in the first quarter of 2017.
Of its first quarter 2017 real estate-related revenues, R512 million was derived from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco, with the balance of R168 million coming from sales of real estate products and property management activities at its Tagaytay Highlands and Midlands residential and leisure complexes south of Metro Manila.
The other day Belle Corporation was reported to be planning to expand its integrated gaming and resort business with plans to add more space to its City of Dreams Manila complex as well as scout for a second site in the country.
In an interview after the firm’s annual stockholders’ meeting, Belle Vice Chairman Willy Ocier said they are currently scouting for a site for its second integrated resort complex.
Noting that Bloomberry Resorts Corporation has been given license by the Philippine Amusement and Gaming Corporation (PAGCOR) to build and operate a second complex in Quezon City, Ocier said “we are applying based on the policy of a level playing field.”
“So far, we have not identified our second site but PAGCOR has asked us to present it as soon as we have it. As soon as we have our second site, then we will apply. It can be anywhere in the Philippines,” he said.
Ocier explained that, “Pagcor said if you have a second site in mind, please apply, and then we will have to consider and approve. They've already said that it cannot be within the entertainment complex, which we agree. But that being said, PAGCOR is open to other areas outside of Metro Manila specially if it's tourism-related they will consider that.”