BELLE Corp. reported a net profit of P595 million in the third quarter, down 16.8% from year earlier, as the property developer came off a strong year-earlier performance that was boosted by one-time gains.
Gross revenue during the third quarter fell 7.6% to P1.94 billion, it told the stock exchange on Friday.
In the nine months to September, Belle, which develops tourism and leisure destinations, reported a recurring profit of P2.94 billion, up 19% from a year earlier. Consolidated net profit was P2.68 billion, up 1% from a year earlier.
Belle, whose principal asset is the City of Dreams Manila, said the lower growth rate was “due mainly to one-time gains recorded in 2017 from sales of non-core investments and properties.”
Through subsidiary Premium Leisure Corp. (PLC), the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) from its income share in the gaming operations of City of Dreams Manila increased nearly 30% to P1.84 billion.
PLC has an operating agreement with the Philippine affiliate of Melco Resorts and Entertainment Ltd. (Melco) that gives it a share of gaming revenue or earnings at City of Dreams Manila.
Belle said EBITDA rose from its real estate businesses to P1.79 billion in the first nine months, up 8% from a year earlier.
It said a significant portion of the real estate-related EBITDA at P1.54 billion was derived from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco.
The balance came from sales of real estate products and property management activities at its Tagaytay Highlands and Midlands residential and leisure complexes south of Metro Manila, it added.
On Friday, Belle shares fell 0.42% to P2.39.
