Philippines real estate firm Belle Corporation has reported a 70% year-on-year decline in net income for FY2020, impacted primarily by a 79% fall in its share of gaming revenue from City of Dreams Manila.
Belle Corp, owner of the land and buildings that comprise City of Dreams Manila which it leases to Melco Resorts and Entertainment (Philippines) earns a share of revenues from the integrated resort via its 78.7%-owned subsidiary Premium Leisure Corp (PLC).
According to the companys Annual Report, published Tuesday, gaming revenue share fell from Php2.98 billion (US$61.6 million) in 2019 to Php635.2 million (US$13.1 million) last year due to gaming operations being suspended in March and capacity limited to a maximum 30% upon resumption.
As a result, the companys net income, which also includes its real estate and property management segments, fell 70% to Php891.7 million (US$18.4 million).
Revenue from real estate proved more resilient, down just 8% year-on-year to Php3.21 billion (US$66.3 million) of which Php2.66 billion (US$55.1 million) came from Belles lease of the City of Dreams Manila land andto Melco, only slightly down from Php2.67 billion (US$55.3 million) in 2019.
However, revenue of Pacific Online Systems Corporation, which leasesonline betting equipment to the Philippine Charity Sweepstakes Office for their lottery and keno operations, fell 67% to Php328.4 million (US$6.8 million). Pacific Online is 50.1% owned by PLC.
In outlining its 2020 results, Belle Corp highlighted the fact that it had managed to stay profitable in spite of economic headwinds caused by the COVID-19 pandemic, as well as by the Taal Volcano eruption in January 2020 that affected its real estate operations in Tagaytay City and Batangas.