Belle income drops 9% on weak gaming revenue

MANILA, Philippines — Belle Corp., the listed high-end property developer of the Sy family, reported a net income of P2.92 billion last year, down nine percent as a result of the weak performance of Pacific Online Systems Corp.

Pacific Online, which leases online betting equipment to the Philippine Charity Sweepstakes Office (PCSO) for its lottery and keno operations, is 51 percent owned by Belle subsidiary Premium Leisure Corp.

The company posted a 49 percent decrease in revenue to P990 million last year.

“This was due to competition from the small-town lottery and the temporary suspension of lottery and keno operations by the PCSO during the third quarter of 2019,” Pacific Online said.

However, the suspensions have already been lifted and Pacific Online is now working closely with the PCSO and its network of agents to boost the attractiveness of the games it offers.

Belle’s consolidated revenue, meanwhile, fell 12 percent to P7.47 billion.

Belle’s share in the gaming revenue at City of Dreams Manila remains resilient even as it declined.

Belle subsidiary Premiere Leisure registered  P2.98 billion in gaming earnings of City of Dreams Manila, down seven percent.

“To mitigate this, Belle decreased its total costs and expenses by 16 percent to P3.34 billion in 2019 from P3.96 billion a year ago,” Belle said.

The company’s real estate operations reported an 11 percent increase in revenue to P3.5 billion last year, of which P2.67 billion came from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco Resorts and Entertainment Philippines Corp.

Revenue from real estate sales and property management at Tagaytay Highlands contributed the balance of P832 million.

Belle is a developer of tourism and leisure destinations in the Philippines.

Its principal asset is the City of Dreams in the 100-hectare Entertainment City  which is being leased on a long-term basis to Melco.

The company also owns real estate assets and develops premium residential resort projects around Tagaytay City.

In its portfolio are the club and golf facilities and residential communities of Tagaytay Highlands and Tagaytay Midlands, as well as some 800 hectares intended for future development.