High-end leisure developer and gaming firm Belle Corp. reported a 13.5 percent drop in consolidated net profit for the period January to September this year, hit by foreign exchange losses.
In a financial report filed with the Securities and Exchange Commission (SEC), Belle said consolidated net income fell to P121.4 million during the nine-month period from P140.3 million a year ago.
With the peso dropping to 47.05 to the dollar as of end-September this year from 41.28:$1 as of Dec. 31, 2007, Belle booked foreign exchange losses of P125.4 million on its dollar denominated debt of $22 milion. This was a reversal of the year earlier gain of $86.9 million.
Belle said its net income from real estate operations jumped 137.4 percent to P363.4 million while operating income expanded by 112 percent to P901.9 million.
As a result, gross profit rose 99 percent to P451.4 million during the nine-month period from P226.6 million a year ago.
Total operating expenses including depreciation and amortization went by 19 percent to P114.4 million from P96 million due to increased project development and marketing activities. Interest expense, on the other hand, declined by four percent to P161.4 million.
Equitized total net earnings from associated companies – Pacific Online and Highlands Prime — amounted to P76.2 million, up 52 percent from the previous level of P50.2 million.
Pacific Online leases online equipment to the Philippine Charity Sweepstakes Office for their lottery operation in the Visayas Mindanao while Highlands Prime is also engaged in real estate development.
Belle also reported that it gained P24.3 million on the extinguishment of debt of Sinophil Corp., an affiliate with investments mostly in gaming and related activities.
As of Sept. 30 this year, Belle’s total assets stood at P9.996 billion as against liabilities of P4.79 billion.
Receivables grew 76 percent to P761.4 million due mainly to sales of real estate and club shares.
Land developments increased 13 percent to P2.8 billion due to the selective acquisition of properties in strategic locations for future projects.
Belle expects to maintain its dominant position in the high-end property sector where its flagship Tagaytay Highlands is considered one of the dominant players in the leisure and resorts industry.
Among its new projects include The Ranch (the fifth phase of Plantation Hills) and four upscale residential subdivisions adjacent to the Tagaytay Midlands golf course — Kew Gardens, Terrazas de Alava, Lakeside Enclave and Tivoli Place. — Zinnia dela Peña