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Belle records drop in H1

Posted on August 05, 2012 10:10:48 PM [ BusinessWorld Online ]

LEISURE PROPERTY developer Belle Corp. realized a double-digit profit drop in the first semester versus year-ago levels on weaker real estate revenues and higher administrative expenses, a filing with the Philippine Stock Exchange showed.

Belle, an affiliate of Sy-led SM Investments Corp., saw its January-to-June net income decline by 11.38% to P90.48 million from P102.10 million in the same period last year.

Revenues went down by 38.07% to P222.58 million versus P359.40 million, year-on year.

This comes as sales of real estate and club shares, which comprised a bulk of revenues, decreased by 43.31% to P192.12 million from P338.87 million in 2011, while administrative and general expenses rose by 23.23% to P46.85 million from P38.02 million.

Total costs and expenses declined by 21.16% to P192.71 million from P244.42 million last year, due largely to lower unit sales of real estate and club shares for the period.

For the second quarter alone, Belle saw its net income fall by 27.02% to P38.01 million from P52.08 million last year, while revenues for the period amounted to P125.63 million, a 21.22% drop from last year’s P159.46 million.

Overall costs and expenses from April to June, meanwhile, fell by 6.92% to P101.63 million versus P109.19 million in the same period last year.

Belle is currently devoting “significant resources” for the early 2013 completion of Belle Grande Manila Bay, the company’s integrated resort and gaming complex that will rise on a 6.2-hectare site within the state-run Bagong Nayong Pilipino Entertainment City.

So far, Belle already had raised around P4 billion via a stock rights issue in September last year to shoulder 13.9% of Belle Grande’s construction costs.

Philippine Amusement and Gaming Corp. has issued Belle one of the four integrated casino permits in Entertainment City. The other permits went to Travellers International Hotel Group, Inc., Bloomberry Resorts Corp., and Tiger Resorts Leisure and Entertainment, Inc.

Last month, Belle announced it has partnered with Macau-based Melco Crown Entertainment, Ltd. for the development of Belle Grande, reducing the stake and involvement of Leisure & Resorts World Corp., the company’s original partner in the project.

Further details on the partnership are expected to be hammered out by next month.

Belle, incorporated in 1973 as Belle Resources, entered the property sector with the development of the Tagaytay Highlands International Golf Club in 1989, data from its Web site show.

Since 1989, Belle said it has launched a total of 19 real estate projects, two golf clubs, and one country club, with a total gross land area of approximately 600 hectares in Tagaytay City and Batangas.

Moving forward, the company said that for 2012, it expects to reverse the drop in its net income last year to P200.52 million versus the year previous.

This will reportedly be on the back of new residential and golf course launches both in Tagaytay City and Batangas.

Belle shares were unchanged at the close of trading last Friday at P4.90 apiece from its previous close. -- Franz Jonathan G. de la Fuente       
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