Leisure estate and gaming firm Belle Corp. posted a 23-percent decline in its second quarter net profit to P52.09 million from a year ago, due to lower revenues from the sale of real estate and club shares.
For the first six months of the year, Belle’s consolidated net income amounted to P102.1 million, 44 percent lower than the year-ago level, the company disclosed to the Philippine Stock Exchange.
For the second quarter alone, income from real estate fell to P55.39 million from P128.46 million in the same period last year as net revenue from real estate and sale of club shares declined by 51 percent year on year to P159.46 million.
Net revenue—referring to revenue less commissions and selling expenses—declined to P359.4 million for the six-month period from P660.5 million a year ago.
The company explained that revenues in 2010 were boosted by new projects—including Katsura, Fairfield and Cotsworld—which were launched in the previous year. In contrast, there were fewer product launches last year, which translated to lower revenues this year.
“In 2011, the company has been devoting significant resources to development activities connected with Belle Grande Manila Bay (Belle Grande), its integrated resort project in Parañaque City, which is targeted for soft opening in the second quarter of 2012 and for grand opening in 2013,” the company said in the disclosure.
In April, Belle launched Lakeside Fairways Phase 8 (Sycamore Heights).
With 123,662 square meters of net sellable area, Sycamore Heights offers 331 residential lots with an average lot area of 374 sqm.
The company plans to launch a new project in the Saratoga Hills area in Tanauan, Batangas, in the second half of this year.
“These projects are expected to bolster the company’s revenues in the second half of 2011,” the disclosure said.
On the expenditure side, total operating expenses were virtually unchanged at about P74.9 million in the first half of 2011 compared with P74.7 million in the first half of 2010.
Operating income for the six-month period amounted to P127 million, which was 55 percent lower than the comparative level a year ago.