By James A. Loyola
Belle Corporation, a member of the SM group of companies, registered a 42 percent surge in consolidated net income to P2.7 billion for the first nine months of 2017 from the P1.9 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, Belle said its operating growth in 2017 was fuelled primarily by growth in its revenues from City of Dreams Manila.
The firm’s recurring net income jumped by a much higher 64 percent to P2.5 billion for the first nine months of 2017 from P1.5 billion for the comparable period in 2016.
Recurring income excludes capital gains on sales of non-core investments of P184 million in 2017 and P373 million in 2016.
Belle’s share in the gaming income of City of Dreams Manila, through its 78.7 percent-owned subsidiary, Premium Leisure Corporation (PLC), almost doubled to P2.16 billion for the current period, from P1.11 billion for the year-ago period.
This was attributable to the continued growth of gaming operations at City of Dreams Manila. PLC has an operating agreement with the Philippine affiliate of Melco Resorts and Entertainment Limited (Melco) that accords PLC a share of gaming revenues or earnings at City of Dreams Manila.
Belle also realized increased revenues from its real estate businesses. Total real estate-related revenues increased by 10 percent, to P2.4 billion for the current period from P2.1 billion for the prior period.
Of its 2017 real estate-related revenues, P1.7 billion was derived from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco, with the balance of P683 million coming from sales of real estate products and property management activities at its Tagaytay Highlands and Midlands residential and leisure complexes south of Metro Manila.
Belle’s principal assets include land and buildings located at Pagcor Entertainment City in Parañaque City, which are being leased on a long-term basis to Melco.
Most of this property is the site of the City of Dreams Manila gaming and resort operations, which encompasses 6.2 hectares of land and more than 30 hectares in building gross floor area.
Belle also realizes a share in earnings from City of Dreams’ gaming operations through PLC.