Belle profit down 11% to P1.73 B in H1

Belle Corp., the high-end developer of the Sy Group, reported a consolidated net income of P1.73 billion in the first half, down 11 percent due to weak results from Pacific Online Systems Corp.

In the second quarter alone, net income reached P877 million, four percent lower than last year.

Consolidated revenue declined seven percent to P4.2 billion during the first half period, down seven percent.

“Although Belle continued to experience growth at City of Dreams Manila, its overall operating performance was affected by weaker results at Pacific Online which leases online betting equipment to the Philippine Charity Sweepstakes Office (PCSO) for their lottery and keno operations.

Premium Leisure Corp., Belle’s gaming subsidiary, registered an increase of nine percent in its share in the gaming earnings of City of Dreams Manila to P1.88 billion.

However, this was not enough to perk up Belle’s performance after Pacific Online, posted a 49 percent decrease in revenue to P559 million.

Belle said this was due to stiff competition from the small town lottery.

Moving forward, Belle said Pacific Online is working closely with the PCSO and its network of agents to boost the attractiveness of the parimutuel games it offers, and is working to implement cost efficiency measures across its operations.

Meanwhile, the third leg of business, real estate, saw a four percent increase in revenue to P1.75 billion.

Of the amount, P1.33 billion came from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco Resorts and Entertainment (Philippines) Corp. – a 16 percent improvement over the first half.

Belle’s real estate sales and property management activities at its Tagaytay Highlands complex contributed the balance of P420 million.

Sy-owned Belle is a developer of tourism and leisure destinations in the country.

Its principal asset is the City of Dreams Manila inside the 100-hectare Entertainment City in Parañaque which is being leased on a long-term basis to Melco.

Belle is also behind the exclusive club and golf facilities and residential communities of Tagaytay Highlands and Tagaytay Midlands as well as 800 hectares intended for future development.