Belle net income expands 14 times to P3.43 B

MANILA, Philippines - Property and gaming firm Belle Corp. posted a net income of P3.43 billion in the nine months through September or about 14 times the P246.9 million profit recorded in the same period last year on higher revenues and gains on the lease of its land and building to casino joint venture partner Melco Crown Entertainment Ltd.

In its filing at the Philippine Stock Exchange, Belle said the jump in earnings was also due to gains on the swap of 809 million shares of Highlands Prime for 109 million shares of SM Prime Holdings amounting to P772.2 million.  The share swap was pursuant to the consolidation of some property assets of the SM Group under SM Prime.

Belle’s gross revenues surged six-fold to P2.067 billion due to the receipt of revenues arising from the lease agreement with Melco totaling P1.87 billion. 

The Macau casino giant has been tapped by the Sy family, which controls Belle, as its partner for a $1 billion integrated resort at Pagcor Entertainment City. The project, rebranded as City of Dreams Manila is targeted for its grand opening in the third quarter next year.

Belle realized operating income from real estate operations of P1.66 billion, up 46 percent from the previous year.

Total operating expenses jumped 78 percent to P356.5 million due to higher depreciation and administrative expense and reimbursement paid to AB Leisure Global Inc. with respect to rent payments and construction costs involving the entertainment and gaming complex.