The property and gaming arm of the SM Group grew its net profit for the first quarter of this year by 15 times compared to the same period in 2011. This is on the back of the receipt of revenues arising from its lease agreements with Melco Crown (Philippines) Resorts Corp.
In a filing with the Philippine Stock Exchange, SM Group’s Belle Corp. disclosed that it realized a consolidated net income of P777 million for the three months of this year ending March 31, 2013.
This, according to Belle Corp., is almost 15 times higher than its consolidated net income of P52.5 million for the first quarter of last year, adding that the company’s consistent profitability even allowed it to post positive consolidated retained earnings of P1.6 billion as of March 31, 2013.
Belle Corp.’s gross revenue of P1.17 billion was also higher by P1.07 billion, or 1,112 percent compared to the P96.2 million the company registered in the same period in 2012.
The gaming firm said that the higher revenue was mostly driven by the receipt of revenues arising from the lease agreements with Melco Crown, totaling P1.03 billion, comprised of a termination fee of P949.6 million in respect to paid rentals up to February 2013 and P84.5 million in current leasing income, which total an increase of P1.02 billion compared to lease income of P7.8 million for the first quarter of 2012.
There was also an increase in other revenues of P23.7 million.
Belle Corp. also said that it has been allocating significant amount of its earnings to the Belle Grande Project, a P1-billion resort and casino project that it will be establishing with Macau casino giant Melco Crown Entertainment Ltd. in the Entertainment City in Pasay.