PROPERTY developer and casino operator Belle Corporation posted a 64 percent rise in net income in the first nine months of the year as its gaming revenues surged.
The company told the Philippine Stock Exchange on Tuesday that its consolidated net income increased to P1.9 billion from the P1.1 billion recorded in the same period last year.
It said recurring net income grew 33 percent to P1.5 billion, excluding extraordinary items consisting mainly of a capital gain of P352 million on the sale of 26 million shares of SM Prime Holdings, Inc. in July 2016.
“The Company’s operating growth in 2016 was fueled primarily by growth in its share in the gaming income of City of Dreams Manila, through its 78.7 percent-owned subsidiary, Premium Leisure Corporation (PLC),” Belle said
Belle noted that PLC’s gaming income share in the nine-month period doubled to P1.1 billion from P554 million a year ago.
“This was attributable to the ramp-up in gaming operations of City of Dreams Manila, which held its grand opening in February 2015,” Belle said.
PLC has an operating agreement with Melco Crown Entertainment Limited (MCE) that accords it a share of gaming revenues or earnings at City of Dreams Manila.
Last week, Belle announced that it is set to pay Leisure and Resorts World Corporation (LRWC) a total of P5.09 billion for the latter’s stake in the operations of City of Dreams Manila.
In March 2013, the LRWC Group entered into agreements with Belle Group, which granted it up to 30 percent interest in Belle Group’s net revenues under its lease and licensee agreements concerning City of Dreams Manila.
Meanwhile, Belle reported that it realized higher revenues in the first nine months from its lease of land and buildings comprising City of Dreams Manila to MCE, translating to a 4 percent increase to P1.64 billion from the previous year’s P1.58 billion.
Belle Corp is engaged in property development and casino operations and its principal assets include land and buildings located at the PAGCOR Entertainment City in Paranaque City, where the City of Dreams Manila is located.CATHERINE TALAVERA