Belle Net Profit Up 74% in 2016
Pasay—(PHStocks)—Belle Corp. (PSE: BEL) realized consolidated net income of PhP3.1 billion for 2016, which is PhP1.3 billion (74%) higher than net income of PhP1.8 billion for 2015. Excluding extraordinary items, principally a capital gain of PhP352 million on the sale of 26 million shares of SM Prime Holdings Inc. (PSE: SMPH) in July 2016, Belle’s recurring net income of PhP2.1 billion for 2016 was higher by PhP737 million (55%) over recurring net income for 2015 of PhP1.3 billion. This performance continues Belle’s record of underlying earnings growth.
Due to the company’s strong profitability, it declared a regular cash dividend of nine-and-a half centavos (PhP0.095) per share to its common shareholders on February 28, 2017. This equates to a total dividend payment of approximately PhP1.0 billion payable on March 30, 2017 to shareholders of record as of March 14, 2017.
The company’s operating growth in 2016 was fueled primarily by growth in its revenues from City of Dreams Manila. Its share in the gaming income of City of Dreams Manila, through its 78.7%-owned subsidiary, Premium Leisure Corp. (PSE: PLC), more than doubled to PhP1.6 billion in 2016 from PhP756 million in 2015. This was attributable to the ramp-up in gaming operations at City of Dreams Manila, which held its grand opening in February 2015. PLC has an operating agreement with Melco Crown Entertainment Ltd (MCE) that accords it a share of gaming revenues or earnings at City of Dreams Manila.
Belle also realized higher revenues from its real estate businesses. Total real estate-related revenues increased by PhP90 million (3%), from PhP2.69 billion in 2015 to PhP2.78 billion in 2016. Of its 2016 revenues, PhP2.19 billion were derived from its lease of the land and buildings comprising City of Dreams Manila to MCE, with the balance of PhP586 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.
About Belle Corporation
Belle’s principal assets include land and buildings located at PAGCOR Entertainment City in Paranaque City, which are being leased on a long-term basis to MCE. 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 its 78.7%-owned subsidiary, PLC. City of Dreams Manila includes approximately two hectares of gaming space, more than 900 hotel rooms operated under three hotel brands (namely Crown, Hyatt and Nobu), the DreamPlay indoor family amusement park, and approximately two hectares of restaurant and retail space.
Belle also owns significant real estate assets in and around Tagaytay City, a temperate mountain resort about 90 minutes south of Manila overlooking scenic Taal Lake and Mount Makiling. These assets consist of premium residential properties for sale and approximately 800 hectares of land held for future development, which are near two exclusive world-class golf clubs and one country club built by the Company.
