Belle Corp doubles first half income on higher sales

MANILA, Philippines - Publicly-listed leisure developer and gaming firm Belle Corp. more than doubled its net income during the first half of the year to P157.8 million on the back of higher sales.

In a financial report filed with securities regulators, Belle said its earnings from real estate operations went up three percent during the period to P245.1 million.

Net revenue from operating sources rose six percent to P615.8 million, mainly coming from sales of lots at the Verandas of Saratoga Hills residential subdivision. Because of higher revenues, gross profit climbed seven percent to P320.8 million . 

Total operating expenses, including depreciation and amortization, reached P84.8 million, seven percent higher than the year earlier level due to increased project development and marketing activities.

Interest expense amounted to P107.5 million or an increase of five percent from P102.7 million. With the depreciation of the peso against the dollar to 48.13:$1 from 47.52 as of end-December 2008, the company booked a P13.5-million foreign exchange translation loss on its dollar-denominated debt of $22 million.

Comparatively, the company had a foreign exchange translation loss of P78.6 million as the peso depreciated to 44.90.

Belle’s equity in net earnings of associated companies — 35 percent-owned Pacific Online Systems Corp. and 36 percent-owned Highlands Prime-amounted to P65.1 million, up 66 percent from P39.1 million. 

Pacific Online leases online equipment to the Philippine Charity Sweepstakes Office for their lottery operations in the Visayas and Mindanao while HPI is engaged in real estate development.

Belle expects to end the year with net earnings of at least P300 million, up 46 percent from P206 million reported in 2008. Revenues are forecast to reach P1.3 billion or almost the same level as last year.

Future revenues of the company will be coming from Lakeside Fairways and Fairfield, a project adjacent to the Verandas at Saratoga Hills to be launched during the second half.

Construction of all four existing phases of Belle’s farm lots project, Plantation Hills (The Sanctuary, The Ridge, The Meadows and The Heights), were completed in December 2007. 

As of end-June this year, the first four phases of Lakeside Fairways, a lots-only subdivision located south of the existing Tagaytay Midlands golf course and launched in 2007, were 89 percent completed and more than 86 percent sold and reserved.