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PEZA approves P13.1B in new investments amid lockdown

THE Philippine Economic Zone Authority (PEZA) said it approved P13.1 billion worth of committed investments for the months of April and May, which are expected to generate nearly 20,000 new jobs.

In a statement, the investment promotion agency said it approved 26 new projects on May 21, its first meeting since the Luzon-wide lockdown began in mid-March.

The projects are estimated to employ 19,894 workers. PEZA said 68.5% of investors are foreign, including American, Japanese, Taiwanese, and Chinese.

This brought PEZA-approved investments to a total of P29.6 billion for 113 projects in the first five months of 2020. The agency did not give comparative figures.

PEZA’s approved investments in the first quarter slumped 28% to P16.5 billion from P22.9 billion in the same period last year after its board failed to meet during the lockdown.

The number of approved projects in the first quarter fell by 32% to 87 from 128 a year ago.

“Being the top investment promotion agency in the country that contributes to export income, employment and investment for the Filipino nation, PEZA is glad to share positive news amidst the pandemic,” PEZA Director General Charito B. Plaza said.

“The approval of new investments or projects is the agency’s positive action to support the Philippine economy in our endeavor to maintain our competitiveness for investments despite the impact of COVID.”

PEZA oversees 408 economic zones with 4542 locator companies employing 1.6 million workers.

Among PEZA-registered companies, 1,701 or 64.58% are operating as of May 25. They are operating at full, minimized, and work-from-home capacities. The rest have suspended operations.

Ms. Plaza said that the Philippines should be able to continue to attract new and expanded investments.

“This can be done by enhancing PEZA’s internationally renowned one-stop-shop, tried and tested tax incentives, ease of doing business, quality human resource and natural resources, despite the underdeveloped factors the country have in terms of infrastructure, logistics facilities, and supply chain.”

PEZA continues to support the “status quo” on tax incentives even amid new proposals to immediately cut corporate income tax and lengthen the sunset period for existing fiscal incentives.

Ms. Plaza has said that she’ll “leave it to the senators (because) they’re the ones who will vote.” — Jenina P. Ibañez

House approves FIST Act on second reading

By Genshen L. Espedido, Reporter

THE House of Representatives on Thursday evening approved on second reading a bill providing for the transfer of banks’ bad loans to asset management companies (AMCs), as a spike in non-performing loans is expected during the coronavirus crisis.

“We cannot afford a banking industry that has become anemic. That is the first thing that we must avoid as an economy. When we have a banking industry that responds to the credit requirements of our businesses, we need a healthy banking industry. At the end of the day, a vibrant, health financial sector is what we need if we are aspiring for a speedy economic recovery,” Quirino Rep. and House committee on banks and financial intermediaries chair Junie E. Cua said during the plenary session on Thursday.

House Bill 6816 or Financial Institutions Strategic Transfer (FIST) bill is aimed at encouraging financial institutions to sell non-performing assets (NPAs) to AMCs that specialize in handling distressed assets.

In the case of non-performing loans, AMCs can restructure debt, condone debt and undertake other restructuring-related activities to dispose of the debt, including to third parties.

The transfer of non-performing assets from a financial institution to an AMC, and from an AMC to a third party will be exempt from documentary stamp tax, capital gains tax, creditable withholding income tax and value-added tax.

Transfers are also subject to only 50% of applicable registration and transfer fees, 50% of filing fees on any foreclosure, and 50% of land registration fees. These privileges will be available for up to two years from the date of the effectivity of the bill’s implementing rules and regulations.

The bill also provides that any loss incurred by financial institutions as a result of the transfer of NPAs will be treated as ordinary losses, provided that the accrued interest and penalties will not be included as loss; the carry-over will be subject to pertinent laws; and the tax saving derived by financial institutions from the net operating loss carry-over will not be available for dividend declaration.

Only the Court of Appeals and the Supreme Court are empowered to issue injunctions against the transfer of NPAs.

AMCs will be required to set up consumer protection mechanisms “as may be prescribed in the IRR issued by the appropriate regulatory authority.”

The measure also encourages the private sector, government financial institutions, and government-owned and -controlled corporations to incorporate and invest in FIST corporations and help in the rehabilitation of distressed businesses “with the end view of contributing to economic growth.”

Mr. Cua included an amendment which states that any fraud, collusion or irregularity committed during the transfer of NPAs will be subject to penalties and other pertinent laws and regulations.

“In the transfer of NPAs, the parties shall exercise the requisite due diligence and any fraud, collusion or irregularity shall be subject to Section 24 of this Act as well as other pertinent laws, rules, and regulations,” he said.

Under Section 24 of the bill, violators face a maximum of P2 million fine and/or imprisonment of not more than 12 years.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on May 21 said that the proposed FIST Act will serve as a safeguard for the financial system.

“I guess it’s better to have it now in anticipation of what might happen if things deteriorate. But at the moment, NPLs (non-performing loans are) very low… But we don’t know whether this pandemic will persist,” Mr. Diokno said.

With the industry’s non-performing assets currently at 2.1%, banks are already factoring in a likely increase in bad loans, according to Noel Neil Q. Malimban, deputy director at the BSP Office of General Counsel and Legal Services.

Meanwhile, House Bill 6768 or the Financial Products and Services Consumer Protection Act which gives financial regulators rulemaking, surveillance and inspection, market monitoring, and enforcement powers relative to consumer protection was also passed on second reading.

Instituto Cervantes screens anti-death penalty film online this weekend

INSTITUTO CERVANTES de Manila will be screening online for free the Spanish classic film El Verdugo (The Executioner), Luis Garcia Berlanga’s 1963 black comedy about the death penalty, on May 30 and 31.

The film is the fourth to be shown in the Spanish cultural center’s ongoing Contigo Clasico (Classics with You) program which is screening 11 classics of Spanish cinema every weekend. The program started on May 9 with Death of a Cyclist (1955) by Juan Antonio Bardem and was followed by Welcome! Mr. Marshall (1953) by Luis García Berlanga and Luis Bunuel’s Viridiana (1961).

Each film will only be available for 48 hours. All films have English subtitles.

The films were chosen because they were movies that “connected with the public of their time and that today are considered reference films of Spanish cinematography,” according to a press release.

El Verdugo revolves around a young undertaker who marries the daughter of the executioner and therefore inherits, albeit reluctantly, the job of his wife’s father.

The film is considered Mr. Berlanga’s masterpiece and was described by Spanish filmmaker Pedro Almodovar as the “best film ever made about the death penalty.”

It caused a big international uproar when Francisco Franco’s government (having just carried out a number of public executions) unsuccessfully tried to stop the film from screening at the Venice Film Festival. The dictator failed and the film won the Critics’ Choice Award at the festival.

Mr. Berlanga’s films are known for their sense of irony and are satires of different social and political situations. Despite the political nature of his films, he had the ability to skirt around censors during the Franco dictatorship, allowing him to create films such as El Verdugo and Los Jueves, Milagro or Miracles on Thursdays (1953).

His works won awards in the most important film festivals incuding the Cannes Film Festival and Berlin Film Festival.

His last film was El Sueno de la Maestra in 2002. He died at the age of 89 in 2010.

Instituto Cervantes’ Classics with You program will continue its run through July with the films, La Vaquilla (1985) by Luis García Berlanga; The Spirit of the Beehive (1973) and The South (1983), directed by Víctor Erice; The Good Star (1997) by Ricardo Franco; The Holy Innocents by Mario Camus in 1984; Tasio (1984) by Montxo Armendáriz; and Carol’s Journey (2002) by Imanol Uribe.

Follow this link to see El Verdugo: https://cultura.cervantes.es/manila/en/El-verdugo/133261. — ZBC

May inflation likely settled at 1.9% to 2.7%: BSP

REUTERS

INFLATION in May likely fell within 1.9% to 2.7%, with upside risks mainly coming from the increase in food prices, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Friday.

“The BSP Department of Economic Research projects May inflation to settle within the 1.9% to 2.7% range; the point inflation projection is 2.3%,” Mr. Diokno told reporters in a Viber message.

This estimate range is well within the BSP’s 2-4% target for this year as well as its 1.75% to 3.75% projection on the back of slowdown caused by the pandemic.

The central bank in April said it sees inflation averaging at 2% this year due to the impact of the outbreak, down from the 2.2% forecast given in March.

If realized, the BSP’s 2.3% point projection for May will be faster than the 2.2% print in April but still slower than the 3.2% logged in the same month last year.

In the first four months of 2020, inflation averaged 2.6%.

The Philippine Statistics Authority is set to report May inflation data on June 5.

May has seen various upside risks to inflation, Mr. Diokno said.

“Higher domestic oil prices as well as the uptick in the prices of various agricultural products due to bottlenecks and the impact of typhoon Ambo contributed to positive price pressures during the month,” he said.

Oil prices saw some recovery in May after major producers implemented supply cuts of about 9.7 million barrels per day or about 10% of global supply to support prices as demand waned due to the pandemic.

Energy Secretary Alfonso G. Cusi has said about 10% of oil retailers’ fuelling stations shut down temporarily in areas under enhanced community quarantine. He said oil prices are likely to remain volatile until the end of the third quarter due to lower demand and restricted mobility.

Meanwhile, data from the Philippine Statistics Authority showed the average farm gate price of palay or unmilled rice inched up by 0.75% week-on-week to P18.81 per kilogram in the first week of May, rising by 1.95% year-on-year.

Data also showed the average wholesale price of regular-milled rice increased by 0.88% to P35.40 per kilo, while the retail price rose 0.11% to P37.90. For well-milled rice, prices rose by 0.64% to P39.28 per kilo while retail price inched up by 0.38% to P42.34.

On the other hand, downside risks to inflation may emerge from lower power charges, Mr. Diokno said.

“The electricity rates in Meralco-serviced (Manila Electric Co.) areas declined during the month despite the reported increase in the total electricity bill due to higher consumption,” he said.

Meralco earlier said the overall electricity rate in May will go down by P0.2483 per kilowatt-hour to P8.7468 from P8.9951 in April. This means that households will likely see their bills drop by around P74.49 to P124.15, depending on their consumption.

The lower monthly rate was caused by the force majeure claim Meralco had invoked in its power supply agreements following the 30% drop in power demand during the lockdown. — L.W.T. Noble

IBPAP seeks transition period for CREATE incentives system

THE OUTSOURCING industry is requesting the government for a longer transition time before changing the current incentives system, while supporting the move to cut corporate income tax to 25% from 30% in July.

The Information Technology and Business Process Association of the Philippines (IBPAP) said in a statement on Friday that the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act would help attract foreign direct investments into the country.

The earlier proposal, CITIRA, proposed to cut corporate income tax to 20% gradually over a decade. CREATE lengthens the sunset provision for enterprises enjoying incentives to four to nine years.

But IBPAP also asked that existing investors be given an additional five years before any changes in the current incentives system prior to the proposed sunset provisions.

“Grant existing investors and locators with a 5-year deferment of any changes to current incentives to counterbalance serious uncertainties brought about by the health crisis and give them ample time to recoup losses. After this much-needed deferment, we can then proceed with the sunset provisions.”

IBPAP also said new investors and locators should be offered at least 10 years of incentives to help the Philippines compete against other countries.

The group also said the Fiscal Incentives Review Board should have jurisdiction over “very large” investments, suggesting investments worth $1 billion or more. They said investment promotion agencies should cover all investments under the threshold.

“Keep the one-stop-shop nature of the Philippine Economic Zone Authority (PEZA) as they have been an effective proponent of the country as a premier investment destination.”

The expanded functions of the Fiscal Incentives Review Board (FIRB) under the bill would put it in charge of approving incentives and overseeing the investment promotion agencies.

The Makati Business Club has also recommended that the FIRB approve large investments.

Trade Secretary Ramon M. Lopez in a statement on Thursday said CREATE would be a “key answer” to attract foreign direct investment.

“Non passing of corporate tax reform… creates uncertainties in the business environment and we have to address this,” he said.

He said the ability to grant tailor-fit incentives to investors would help the Philippines match countries that offer flexible incentives packages. — Jenina P. Ibañez

Unused tax credit certificates to be converted to cash after a year

TAX CREDIT certificates (TCCs) that remain unused for more than one year will be converted into cash, the Bureau of Internal Revenue (BIR).

BIR Commissioner Caesar R. Dulay issued Revenue Regulations (RR) 14-2020 on Thursday to amend provisions on the cash conversion of unutilized TCC.

The directive was approved by Finance Secretary Carlos G. Dominguez III on March 6.

“Any TCC which remains unutilized for more than one year at any given interval of time during its validity shall be converted into cash with prior written notice by the BIR, subject to the availability of funds in accordance with the procedural requirements that will be issued by the BIR for this purpose,” the amended rules read.

A TCC is a document reflecting the amount due to a taxpayer from the overpayment or erroneous payment of taxes.

A taxpayer has the option to use the TCC as payment for any tax liabilities via a tax debit memo (TDM) or it can be converted into cash “in case the taxpayer-owner has no…use for it,” according to BIR.

A taxpayer can file a request to convert the unused tax credits into a cash refund within the validity period of the TCC provided that the original copy is surrendered to the BIR for verification and cancellation and a refund check or treasury warrant is issued.

However, a refund check that will remain “uncashed or unclaimed within five years” from the day it was issued will be “forfeited in favor of the government.” The amount will be remitted back to the state’s general fund.

“All TCCs which are already expired upon the effectivity of this regulations shall be automatically cancelled by the BIR, except those TCCs which are with the BIR, for purposes of utilization thru TDM, conversion or revalidation, before the expiration of their respective dates of validity,” the bureau said.

The regulations will take effect 15 days after the RR 14-2020’s publication on Friday, May 29. — B.M. Laforga

PNR sees 80% decline in monthly revenues on transport restrictions

THE Philippine National Railways (PNR) is expecting an 80% decline in monthly revenues due to government restrictions as the country gradually eases lockdown measures.

Train operations in Metro Manila are set to resume by June 1, more than two months since the region was placed under strict lockdown.

“80% po ang mawawalang revenues mula sa operation sa June 1 (Around 80% of revenues will be lost once we commence operation on June 1),” PNR Acting Assistant General Manager Celeste D. Lauta said in an interview with DZMM on Friday.

On average, the state-owned railway company collected P25 million in revenues monthly before the lockdown period began in mid-March.

Despite the expected revenue drop, PNR said it will maintain its fare between P15-P60.

PNR will be limiting its passenger capacity per travel to 143 from the usual average of 750. It will only accep 15 passengers at its first station.

Meanwhile, Manila Metro Rail Transit System Line 3 (MRT-3) will set its capacity to 153 passengers per travel from 1,200 as it likewise resumes operations, accepting only 75 people at the first station, but will not increase fares, as well.

“Alam naming bababa ang aming revenues, pero ang mga pamasahe, increase, wala po (We know that our revenues will go down but there will be no fare increase),” MRT-3 Director for Operations Michael J. Capati said.

To augment its limited capacity, the Department of Transportation (DoTr) said around 300 to 500 buses will be deployed on Epifanio Delos Santos Avenue along with point-to-point buses, traversing the middle lane.

“In general terms, ikakasa namin ‘yung operation ng tren (we will commence the train operations) with bus operation following the same line. Para sa ganoon, ma-achieve natin (So that, we can have) more or less volume of passengers that move [around],” Transportation Secretary Arthur P. Tugade said in a briefing on Thursday night.

The DoTr said physical distancing marks are already placed around MRT-3 facilities, setting passengers at least a meter apart from one another.

Mr. Capati said train marshals will enforce the distancing protocol.

Meanwhile, PNR’s Ms. Lauta said there will be thermal scanning of PNR passengers upon their entry.

The government on Thursday said it will place under general community quarantine (GCQ) the National Capital Region, Cagayan Valley, Central Luzon, Calabarzon, the provinces of Pangasinan and Albay, and Davao City, while the rest of the country will be under a modified GCQ. — Adam J. Ang

RCEF seed deliveries reach one million bags

INBRED RICE seed delivery under the Rice Competitiveness Enhancement Fund (RCEF) has reached more than one million bags, the Philippine Rice Research Institute (PhilRice) said on Friday.

In a statement, PhilRice Deputy Executive Director Flordeliza H. Bordey said 1,128,368 bags of certified inbred rice seeds have been delivered to rice producing cities and municipalities.

Ms. Bordey said the seed deliveries account for almost half of PhilRice’s seed distribution target for the planting season.

“The rice seeds were delivered to 51 provinces, which would be planted in about 126,000 hectares of land. It was achieved despite the difficulties in logistics and other issues in light of the pandemic,” Ms. Bordey said.

The local government units, through its respective agriculture officers, have spearheaded the seed distribution amid the lockdown.

The seeds were given to farmers through barangay scheduling while strictly observing physical distancing.

“As the country’s health workers continue to fight as frontliners to ensure our health and safety, it is also comforting that the rice farmers and agriculture industry workers in the government and private sectors work together to ensure food security of the nation. We can call them the ‘backliners’,”Ms. Bordey said.

Ms. Bordey said certified inbred seeds under the RCEF program could yield 10% or more, compared to farmer-saved seeds from the previous harvest.

“The inbred seeds have high seedling vigor, pure, and uniform crop stand,” Ms. Bordey said.

The RCEF program aims to distribute more than 2.5 million bags of high-quality seeds to more than one million Filipino rice farmers.

PhilRice said farmers practicing the transplanting method and listed in the Registry System for Basic Sectors in Agriculture can receive one bag of seeds for every half hectare.

Meanwhile, farmers using the direct seeding method can receive two bags of seeds for every half hectare. — Revin Mikhael D. Ochave

Japan’s Sumitomo acquires stake in LRT-1 operator

LRT
BW FILE PHOTO

By Denise A. Valdez, Reporter

METRO PACIFIC Investments Corp. (MPIC) has sold part of its stake in the operator of the Light Rail Transit Line 1 (LRT-1) to Japanese company Sumitomo Corp.

In a statement, the listed company said it unloaded its economic interest of 19.2% in Light Rail Manila Corp. (LRMC), which holds a concession to operate, maintain and expand the LRT-1 until 2047.

Under the deal, Sumitomo acquired a 34.9% stake in Metro Pacific Light Rail Corp. (MPLRC), which has a 55% stake in LRMC.

Sumitomo is the maintenance provider of the Metro Rail Transit Line 3 (MRT-3), which is currently contracted by the government to do its rehabilitation together with Mitsubishi Heavy Industries Ltd. and TES Philippines, Inc.

The transaction between MPIC and Sumitomo is worth approximately P3 billion, which was paid in full upon completion.

“MPIC welcomes Sumitomo as a strategic stakeholder in the LRT-1 project along with its current partners AC Infrastructure Holdings Corp. and Macquarie Investments Holdings (Philippines) Ltd.,” MPIC Chairman Manuel V. Pangilinan said in the statement.

“This investment by Sumitomo is a welcome illustration in their belief in the future of this project. We are all eager to resume operations of LRT-1 when the current extended quarantine is released,” he added.

In a disclosure to the exchange, MPIC said the deal is expected to strengthen the balance sheet of the company.

Mr. Pangilinan said in a media briefing on May 6 that the company was evaluating its transportation-related portfolio considering physical distancing measures required by the coronavirus disease 2019 (COVID-19) pandemic. MPIC’s rail business reported its profit slid 19% to P180 million in the first quarter.

LRMC is currently working to extend LRT-1 to Cavite by adding eight new stations from Baclaran to Bacoor. Before the lockdown in March, the plan was to get it partly operational by end-2021.

“Sumitomo’s investment will significantly contribute to the efficiency of our current operations and assist us as we continue heavy works on the Cavite Extension,” LRMC President and CEO Juan F. Alfonso said in the statement.

WATER CONTRACT
Meanwhile, MPIC said in an online stockholders’ meeting Friday that its water unit Maynilad Water Services, Inc. may begin contract negotiations with the government in the next two weeks.

MPIC President and CEO Jose Ma. K. Lim said the government committee in charge of drafting Maynilad’s contract is already finalizing the terms. Once done, this will be presented to President Rodrigo R. Duterte for approval, then given to water concessionaires for consideration.

“We can expect that by the first half of June, we will receive the set of terms for consideration and that will be the start of the discussion,” Mr. Lim said.

“We are very optimistic because of the recent statement of the president being more friendly towards the concessionaires,” he added.

To recall, Maynilad’s water contract, along with that of its fellow water concessionaire Manila Water Co., Inc., have been under government review since December after Mr. Duterte alleged them of onerous provisions.

But in May, Mr. Duterte apologized to the two companies, saying the private sector’s assistance to the COVID-19 pandemic has humbled him, and now he is “ready to talk” and “would be reasonable.”

MPIC posted a 47% income decline to P1.9 billion in the first quarter, amid the economic slowdown. Shares in the company at the stock exchange added six centavos or 2.12% to close at P2.89 apiece on Friday.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group.

Puregold Q1 profit gets boost from panic-buying

puregold
BW FILE PHOTO

EARNINGS of Puregold Price Club, Inc. jumped 17% in the first quarter, as consumers began panic-buying before the lockdown was implemented in mid-March.

In a statement on Friday, the listed grocery operator said its consolidated net income in the January-to-March period rose to P1.76 billion from P1.51 billion last year.

Consolidated net sales from Puregold and S&R stores increased 17% to P40.95 billion. Puregold stores accounted for 77% of total sales, while S&R shopping warehouses and pizza stores made up the remainder.

The company said its same-store sales growth, or the growth in sales for its existing stores, unexpectedly rose to 14.4% for Puregold and 5.1% for S&R.

“(The growth in sales) in this period is driven by higher consumer spending and pantry loading prior to the (lockdown) as well as the low inflation environment in 2020,” it said.

Luzon island was placed under strict home quarantine in mid-March due to the coronavirus disease 2019 (COVID-19) pandemic. This prompted shoppers to buy items in bulk to limit the frequency of their grocery runs.

Operating income of Puregold stood at P2.97 billion during the period, up 15% from in the same three months last year.

The company has 443 stores in its portfolio at the end of March, consisting of 384 Puregold stores, 20 S&R shopping warehouses and 39 S&R pizza stores.

Shares in Puregold at the stock exchange fell 35 centavos or 0.76% to P46 each on Friday. — Denise A. Valdez

Vista Land posts 10% income growth in 2019

VISTA LAND & Lifescapes, Inc. (VLL) reported a 10% increase in profits last year, as it saw higher demand for its commercial assets.

In a statement, the Villar-led property developer said its net income grew to P11.6 billion from P10.5 billion. Consolidated revenues were 7% higher at P44.4 billion.

Leasing income expanded by 20% to P8.5 billion, while contributions from real estate also climbed 3% to P32.8 billion.

“We are pleased with the company’s 2019 performance as both our leasing and residential businesses provided steady growth,” Vista Land Chairman Manuel B. Villar, Jr. said in the statement.

Vista Land currently has about 1.5 million square meters of investment properties. It launched an estimated P38.5-billion worth of projects last year, composed of affordable housing and mid-rise buildings, mostly outside Metro Manila.

As the world faces the coronavirus disease 2019 (COVID-19) pandemic this year, Vista Land President and CEO Manuel Paolo A. Villar said the company will optimize its existing portfolio of investment properties and its current land bank of about 3,000 hectares.

“We saw that demand for affordable housing persists and homebuyers, most of which are end users, remain committed to completing payments,” he said.

The company said it will focus on building integrated urban developments that combine lifestyle retail, office space, university, healthcare, residential developments and leisure.

Shares in Vista Land at the stock exchange shed 15 centavos or 4.41% to P3.25 each on Friday. — Denise A. Valdez

City of Dreams operator’s profit falls as tourist arrivals decline 31% profit decline in Q1

EARNINGS of Belle Corp., the listed operator of City of Dreams Manila, dropped by 31% in the first quarter as tourist arrivals fell due to the Taal eruption and the onset of the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Friday, the company said its consolidated net income stood at P577 million, down from P835 million in the same period last year. Consolidated revenues also fell 25% to P1.42 billion.

“The effects of the pandemic began with declining tourist arrivals prior to the implementation of the enhanced community quarantine nationwide and was compounded by the temporary suspension of gaming operations at City of Dreams Manila on March 16…,” it said.

Regulators suspended gaming operations since mid-March as a measure to contain the spread of COVID-19 in the country. Belle said it gets most of its revenues from gaming operations at City of Dreams Manila. Because of the suspension, the company’s gaming revenues slumped 39% to P445 million in the first quarter.

Real estate revenues fell 8% to P754 million, as the decline in its Tagaytay business was partly offset by consistent revenues from leasing to Melco Resorts and Entertainment (Philippines) Corp.

The company said it raised P668 million from leasing land and buildings comprising City of Dreams Manila to Melco. However, its real estate sales and property management activities in Tagaytay declined 44% to P86 million due to the eruption of Taal Volcano in January.

“City of Dreams Manila is using this time to prioritize the health of its employees, to establish protocols that ensure a safe working and recreational environment and to support the government in keeping people safe and restarting the economy,” the company said.

Shares in Belle at the stock exchange inched up four centavos or 3.05% to P1.35 each on Friday. — Denise A. Valdez

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