Belle Corp posts brutal losses
It’s been a rough couple of years for Belle Corp, which owns half of City of Dreams Manila scrambles after a 96 per cent income loss.
Calvin Ayre reports that in 2018, the corporation posted a year-on-year revenue increase of $69 million, but that was the height of its gains.
Last year, it saw its consolidated net income fall 11 per cent in the first half of the year and 2020 has been hit even hard.
According to its latest filing, Belle Corp suffered from the casino shutdown in the Philippines, reporting a 96 per cent drop in income for the first nine months of the year.
From January to September, Belle Corp had income of just $1.92 million, down from $52.8 million during the same period in 2019.
The Philippines, like virtually everywhere else around the world, was forced to shut down its gambling and other commercial operations because of COVID-19, leading to the company seeing revenue of just $60.06 million compared to the $119.09 million it recorded during the first nine months of last year.
From July to September, the company took a net loss of $2.66 million after having gains of $10.64 million during the same period in 2019.
That quarter’s bottom line came off of revenue that had fallen 42 per cent, dropping to $18.69 million from $32.43 million a year earlier.
The majority of the losses are directly attributed to the shutdown of City of Dreams Manila, which caused the company to lose 86 per cent of its revenue from the venue over the first nine months of 2020.
It only received $6.717 million during the period, whereas it had been able to rake in $49.19 million for the period last year.
The coronavirus pandemic forced the Philippines to either shut down completely or severely handicap casinos from the middle of March until September.
Losing a primary revenue stream for six months is enough to hurt any company and Belle Corp added in its filing, “The decreases in revenues and profits resulted primarily from COVID-19 related developments.
The effects of the pandemic began with declining tourist arrivals prior to the implementation of the community quarantines nationwide and were compounded by the temporary suspension of gaming operations at City of Dreams Manila on March 16, in compliance with government initiatives to contain the virus.”
In addition to the revenue damage done to City of Dreams Manila, Belle Corp also took a hit with Pacific Online Systems Corp, a subsidiary that controls online gambling equipment for the Philippine Charity Sweepstakes Office.
That entity lease equipment from Belle Corp for its lottery and Keno operations, and Pacific Online, of which just over 50 per cent is owned by Belle Corp, saw its revenue fall 71 per cent to $4.5 million during the period.
Belle Corp is also into real estate, including land and buildings that Melco Resorts and Entertainment leases at City of Dreams Manila for its gambling operations there.
This was the only stable item on the books for the period, with the company collecting $41.32 million from Melco, the same amount it received last year.
Overall, Belle Corp saw a 10 per cent decline in its real estate revenue, taking in $48.96 million during the period.