Belle profit up 10.6%

MANILA, Philippines - Belle Corp., a high-end leisure developer and gaming firm controlled by the family of retail tycoon Henry Sy, posted a net income of P333.35 million in the nine months ending September this year, up 10.6 percent from the same period in 2009.

In a financial report submitted to securities regulators, Belle said revenues amounted to P937.32 million, 10.7 percent lower than the P1.05 billion recorded the previous year. 

In the third quarter alone, net earnings rose six percent to P152.05 million while revenues dropped 35.67 percent to P276.82 million.

Realized income from real estate operations went up seven percent to P407.6 million from P381.6 million. Gross profit edged up three percent to P514.4 million due to a greater mix in total revenues of higher margin projects specifically Cotswold (the fifth phase of the Lakeside Fairways subdivision) and Fairfield.

Total operating expenses, including depreciation and amortization, climbed five percent to P129.8 million from P124 million in 2009 due to increased project development and marketing activities.

The company incurred an interest expense of P148 million, seven percent lower than the P158.9 million recorded a year before. However, with the appreciation of the peso against the dollar to 43.88 as of Sept. 30, 2010, Belle recorded a P50.7-million foreign exchange translation gain on its dollar-denominated debt of $22 million.

Belle’s equity in net earnings of 35 percent-owned Pacific Online Systems Corp. and 36-percent-owned Highlands Prime, declined 27 percent to P89.1 million from P121.9 million

Revenues of the company in the near future will be coming from Lakeside Fairways’ seventh and eighth phases, and the second phase of Fairfield, which Belle plans to launch in 2011.

Lakeside Fairways is a lots-only subdivision launched in 2007 located south of the Tagaytay Midlands golf course in Talisay, Batangas, while Fairfield is a lots-only subdivision in Tanauan, Batangas launched in the last quarter of 2009.

As of end-September this year, the first four phases of Lakeside Fairways (Kew Gardens, Terrazas de Alava, Lakeside Enclave and Tivoli Place), were 97 percent completed and more than 85 percent sold and reserved.

Cotswold, which was launched in 2008, was 88 percent completed and approximately 89 percent sold and reserved as of end-September 2010.

The sixth phase of Lakeside Fairways (Katsura), which was launched in 2009, was 88 percent completed and approximately sold and reserved as of the same period.