Belle Corporation realized consolidated revenues of PhP2.01 billion for the six months ended June 30, 2020, down 52% compared to revenues of PhP4.20 billion for the six months ended June 30, 2019. As a result, Belle’s consolidated net income of PhP222 million for the first six months of 2020 was 89% lower than consolidated net income of PhP2.04 billion for the first six months of 2019. Excluding extraordinary items, Belle’s consolidated recurring net income of PhP515 million for the 2020 period was 76% lower than the comparable figure of PhP2.16 billion for the 2019 period.
The decreases in revenues and profits resulted primarily from COVID-19 related developments. The effects of the pandemic began with declining tourist arrivals prior to the implementation of the community quarantines nationwide and was compounded by the temporary suspension of gaming operations at City of Dreams Manila on March 16, 2020 in compliance with government initiatives to contain the virus. Belle’s primary growth driver, its share in the gaming revenues at City of Dreams Manila, declined by 87%, from PhP1.88 billion in the first six months of 2019 to PhP248 million in the first six months of 2020, as gaming operations remained suspended for the entire second quarter of 2020. City of Dreams Manila is using this time to prioritize the health of its employees, to establish protocols that ensure a safe working and recreational environment and to support the government in keeping people safe in restarting the economy.
The COVID-19 pandemic also caused weak results at Pacific Online Systems Corporation (“Pacific Online”), which leases online betting equipment to the Philippine Charity Sweepstakes Office (“PCSO”) for their lottery and keno operations. Pacific Online, which is 50.1%-owned by Belle’s subsidiary Premium Leisure Corporation (“PLC”), posted a 68% decrease in revenues, from Php 559 million in the first six months of 2019 to Php 180 million for the same period in 2020. With the exception of a few locations upon the easing of the quarantine in June 2020, outlets operated by Pacific Online were closed during the entire quarter.
Belle’s real estate operations recorded a 10% decrease in revenues, to PhP1.58 billion in the first six months of 2020 from PhP1.76 billion in the first six months of 2019. Of real estate revenues in 2020, PhP1.34 billion came from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco Resorts and Entertainment (Philippines) Corporation (“Melco”), which were essentially unchanged from 2019. However, Belle’s real estate sales and property management activities at its Tagaytay Highlands complex, which were affected by the community quarantines during the entire second quarter of 2020 and the Taal Volcano eruption in January 2020, contributed revenues of PhP244 million during 2020, which were 42% lower than in 2019.