There’s still a little over six weeks before 2013 comes to a close, but Philippine property and gaming firm Belle Corp. has already made significant strides in its net revenues for 2013.
In the first nine months of the year through September, Belle’s net income has lapped its earnings for the entire 2012 14 times over, generating Php3.43 billion compared to the Php 2496.9 million it earned in all of 2012.
Belle’s strong net income for the first nine months of the year was largely attributed to higher revenues and gains from its casino partnership with Melco Crown Entertainment Ltd, of which Belle generated the biggest chunk of its net income from the lease agreement with Melco amounting to Php1.87 billion. Another reason for the significant jump in revenue was the amount Belle Corp. generated on the swap of 809 million shares for 109 million shares of SM Prime Holdings. That transaction netted Belle another Php772.2 million, pursuant to the consolidation of property assets of the SM Group under SM Prime.
Operating income from real estate operations also shot up by 46 percent compared to last year’s numbers, hitting Php1.66 billion while total operating expenses reached Php356.5 million, 78 percent higher than last year’s total figure. The added costs for doing business was pointed to higher increased depreciation and administrative expense , as well as the company’s reimbursement to to AB Leisure Global Inc., which included rent payments and construction costs involving the massive and since renamed City of Dreams Manila project the company is building with Melco Crown.
With these numbers accounting for just the first nine months of the year, early estimates call for Belle Corp. to post a healthier financial report once 2013 is up. That bodes well for the company, which is in the middle of developing the $1 billion City of Dreams Manila project that’s expected to open in less than a year’s time.
Call it a case of hitting all the right spots at the right time, and with the massive resort and casino set to join Bloombery Resorts’ Solaire Casino & Resort in Entertainment City, look for Belle Corporation to have more positive gains moving forward.
