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Belle profits fall on lower sales

Posted on July 31, 2011 10:11:02 PM [ BusinessWorld Online ]

BELLE CORP. profits dropped in the first half due to lower revenues, data from the luxury developer and gaming firm’s filing with the Securities and Exchange Commission showed.

The Sy-led firm reported a consolidated net income of P102.1 million for January to June, 43.7% lower than the P181.3 million it reported for the same period last year.

Gross profit, meanwhile, declined by 41% to P215.5 million versus June 2010’s P367.9 million.

This, as revenues in the first half fell by 46% to P359.4 million as it instead devoted resources to developing the casino complex Belle Grande Manila Bay which will only be ready by the second quarter next year.

In contrast, revenues in the same period last year benefited from the launch of three projects.

But the company said it hopes to shore up revenues in the second half with the launch of new residential developments.

The drop in revenues in the first half was cushioned by a similar drop in expenses. Costs fell by 61.5% to P232.393 million, largely due to a decline in costs involved in selling real estate.

The company’s assets, meanwhile, grew 67% to P17.619 billion due to increases in the value of the firm’s investments. Liabilities similarly increased by 40% to P6.071 billion for the period as the company took on more loans.

Equitized net earnings from associated companies climbed by 3% to P60.7 million from P59.2 million in the 2010 period due to higher earnings from subsidiary Pacific Online Systems Corp. in which Belle holds a 35% interest.

The subsidiary leases online equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao.

Belle Corp. shares were traded 0.21% higher at P4.71 last Friday. -- F. J. G. de la Fuente

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