Belle Corp, a prominent real estate firm in the Philippines, has reported a significant downturn in its financial performance for the second quarter of 2024. The company’s net income plummeted by 33% to Php882.4 million (US$15.4 million) from Php1.31 billion in the same period last year. This dramatic decline is largely attributed to a substantial decrease in gaming revenues from its subsidiary, Premium Leisure Corp (PLC).
Decline in Gaming Revenue
Premium Leisure Corp, a joint venture partner with Melco Resorts & Entertainment (Philippines), operates within the City of Dreams Manila. For the second quarter, PLC’s share of gaming revenues dropped by 24% compared to the previous year, totaling Php943.0 million (US$16.4 million). This significant reduction reflects a weaker performance in the gaming sector of the integrated resort, thereby impacting Belle Corp’s overall profitability.
In addition to the decline in gaming revenues, PLC’s subsidiary, Pacific Online Systems Corporation, which provides betting equipment to the Philippine Charity Sweepstakes Office, experienced a 17% revenue decrease. The subsidiary’s revenue fell to Php258.9 million (US$4.5 million), compounding the decline in Belle Corp’s consolidated net income.
Growth in Real Estate Revenue
On a positive note, Belle Corp’s real estate sector demonstrated resilience. The company saw a 14% increase in revenue from its real estate operations, reaching Php1.53 billion (US$26.7 million). This growth is attributed to a 16% rise in revenue from the lease of land and buildings to Melco Resorts. Specifically, the lease revenue from City of Dreams Manila amounted to Php1.16 billion (US$20.2 million) for the quarter. This increase in real estate revenue provides a buffer against the declines in gaming revenue and supports Belle Corp’s financial stability.
Overall Financial Performance
For the second quarter of 2024, Belle Corp’s total consolidated revenues declined by 6% year-on-year to Php2.73 billion (US$47.6 million). This decrease is primarily due to the reduced gaming revenues, despite the positive growth in the real estate segment.
While Belle Corp has managed to achieve growth in its real estate operations, the decrease in gaming revenues from PLC has significantly affected the company’s overall financial results. To navigate these challenges, Belle Corp may need to focus on strategies to enhance its gaming segment or diversify its revenue streams to ensure long-term stability and growth.