Belle reports 44% drop in net income

MANILA, Philippines - Upscale leisure developer and gaming firm Belle Corp., reported a 44 percent drop in net profit in the first half of this year due to lower revenues.

In a financial report submitted to securities regulators, Belle said consolidated net earnings amounted to P102.1 million compared with P181.3 million the previous year as net revenues slid by 45.6 percent to P359.4 million.

Sales from real estate and club shares declined by 56.4 percent to P292.72 million. As a result, gross profit fell to P215.5 million

In the second quarter alone, Belle’s net profit was P52.07 million, down 23.06 percent from P67.68 million.

Belle said it has been devoting significant resources to development activities connected with its $750 million Belle Grande Manila Bay integrated resort project located along Roxas Boulevard, which is targeted for soft opening in the second quarter of 2012, with a grand opening in 2013.

In April, Belle launched Lakeside Fairways Phase 8 (Sycamore Heights), offering 331 residential lots with an average lot area of 374 sqm.

For the rest of the year, the company plans to launch a new project in the Saratoga Hills area in Tanauan, Batangas, which is expected to bolster its revenues.

Total operating expenses were virtually unchanged at P74.9 compared with P74.7 million.

Belle’s equalized net earnings from associated companies went up three percent to P60.7 million. It owns 35 percent of Pacific Online Systems Corp., which leases on-line equipment to the Philippine Charity Sweepstakes Office for lottery operations in the Visayas and Mindanao.

lnterest expense stood at P89.1 million, seven percent lower than the P96.2 million recorded a year before.

The company had a foreign exchange translation gain of P11.5 million based on a foreign exchange rate of 43.33 to $1 as June 30, 2011 versus foreign exchange rate of 46.37 to $1 as of June 30, 2010.

As of end-June this year, Belle’s total asset base jumped by 67 percent to P17.62 billion from P10.53 billion as of Dec. 31, 2010, due to increases in the value of its investments and fixed assets.

The group’s investments and advances likewise increased to P7.8 billion mainly due to the acquisition from the SM group of 100 percent ownership of Premium Leisure and Amusement, lnc. (PLAI), which owns a license from PAGCOR to build and operate integrated resorts.