Leisure estate and gaming company Belle Corporation saw its earnings jump 64 percent in the first nine months of 2016 as the group unlocked higher earnings from City of Dreams Manila.
The Philippine Stock Exchange-listed company posted its results this week, which include a consolidated net income of PHP1.9 billion (USD38.81 million) as of September 30—a PHP729 million (USD14.89 million) jump compared to PHP1.1 billion (USD22.47 million) in the same period last year.
“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%-owned subsidiary, Premium Leisure Corporation (PLC),” Belle said in a statement.
Thanks to City of Dreams’ ramped up gambling operations, PLC saw its gaming income share double to PHP1.1 billion during the nine-month period, from PHP554 million for the comparable period in 2015.
Belle also posted a 4 percent increase in revenues from the lease of the land and buildings that comprise City of Dreams Manila to Melco Crown Entertainment to P1.64 billion for the first nine months of the year.
Meanwhile, the gaming and property company announced last week that it has rescinded its revenue-sharing agreement with gaming investor Leisure resorts World Corporation (LRWC). Belle will pay LRWC PHP5.09 billion (USD104.56 million) for terminating the agreement.
In January 2011, LRWC inked several agreements with Belle, along with its unit Premium Leisure and Amusement Incorporated (PLAI), for the leasing, fit out, and operation of an integrated casino development project now within Philippine Amusement and Gaming Corporation’s (PAGCOR) Entertainment City.
The pact, however, were amended in March 2013 after Belle picked MCE, a company owned by Australian billionaire James Packer and Lawrence Ho, to operate the $1 billion City of Dreams Manila project. Belle and PLAI agreed to pay the LRWC Group an amount equivalent to the 30% interest in the net lease income of the project and the 30% share in the gaming revenue derived therefrom, among others.