Belle Corp. reports P52.5M in Q1 profit

MANILA, Philippines—Leisure estate and gaming company Belle Corp. grew its first-quarter net profit by 4.9 percent to P52.47 million on higher interest income, foreign exchange gain and equity in net earnings of associates.

In a regulatory filing, Belle reported that revenues for the first quarter dropped by 51.5 percent to P96.94 million due to a decline in the sale of real estate and club shares.

“The company has been devoting significant resources to development activities connected with Belle Grande Manila Bay, its integrated resort project located in Parañaque City, which is targeted for its grand opening during 2013,” Belle said in its quarterly report.

On the other hand, Belle’s first-quarter results were boosted by the increase in interest income to P28.9 million from only P300,000 year on year, in turn due to increases in cash levels in anticipation of requirements for the Belle Grande hotel-casino project. This cash level included a $50-million deposit required to be maintained under the license issued by the Philippine Amusement and Gaming Corp., of Pagcor.

The significant increase in 2012 deposit levels was funded mainly by new long-term loan drawdowns amounting to P2.2 billion, which funded the escrow deposit required by Pagcor and the last installment of its stock rights offering.

Belle’s share in the net earnings from associated companies also increased by 2 percent to P38.1 million during the first quarter from a year ago, due mainly from its 35 percent-owned associate Pacific Online Systems Corp.

A foreign exchange gain of P15.9 million was also posted in the first quarter, 61 percent higher than the forex windfall in the same period a year ago. The gains were mostly derived from its foreign currency-denominated debt paper due 2014 and worth $22 million.

Belle posted positive consolidated retained earnings of P390.7 million as of end-March.