Belle Corp profit down 77% on lower revenues

MANILA, Philippines - High-end leisure developer and gaming firm Belle Corp. reported a P76.27-million net income in the nine months ending September this year, down 77 percent from P333.35 million in the same period in 2010 due to lower revenues.

In a financial report submitted to securities regulators, Belle said revenues fell 49 percent to P478.51 million from P937.32 million. Sales from real estate and club shares declined 51 percent to P442.98 million.

Gross profit likewise decreased 47 percent to P285.4 million.

Cost and expenses, however, went down to P348.09 million even as it has been channeling significant resources to development activities connected with Belle Grande Manila Bay, a multi-billion peso integrated resort complex to rise in Parañaque City targeted for grand opening in 2013.

During the period under review, Belle received net rental income of P17 million on about six hectares of land leased by the company to AB Leisure Global Inc. for the site of Belle Grande, starting Jan. 14, 2011.

In the second quarter this year, Belle introduced Lakeside Fairways Phase 8 (Sycamore Heights) with 123,662 square meters of net saleable area and 331 residential lots.

In the third quarter, the company introduced extensions of existing projects, namely five new pads for log cabins at The Woodlands and nine new lots in Lakeside Fairways Phase 6. These project expansions will carry total potential sales of about P225 million.

Belle’s equities net earnings from associated companies plunged 49 percent to P45.1 million. The company realized lower equitized earnings from its 35 percent owned associate Pacific Online Systems Corp. with equitized earnings of P76.5 million out of net income of P218.6 million the previous year.

Belle also realized a loss from 36-percent owned associate Highlands Prime with an equitized loss of P10.5 million out of the P29.1-million net income in 2010.