Belle earnings breach P3 B as casino revenues stream in

 Economy
Apr 042014
 

MANILA, Philippines – Belle Corp., the gaming arm and upscale leisure developer of the SM Group, breached the P3-billion income mark last year as rental revenues from its new integrated casino project streamed in.

In a regulatory filing, Belle said its consolidated net income surged more than six times to P3.63 billion last year from P555.66 million in 2012.

“This was achieved due to significantly higher revenues and a day one gain on finance lease accounting of P2.34 million,” the company said.

It also recorded a P772.2-million gain from the swap of 809 million Highlands Prime Inc. shares for 109 million SM Prime Holdings Inc. shares, the property firm said.

Gross revenues grew more than five times to P2.62 billion from P494.43 million a year ago.

Belle said it posted higher revenues “due to the receipt of revenues arising from the lease and operating agreements with Philippine subsidiaries of Melco Crown Entertainment Ltd. totaling P2.28 billion.”

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Belle is the builder of the $1.3-billion City of Dreams Manila complex in the Manila Bay reclamation area. Macau-based casino giant Melco Crown, for its part, leases the property and will operate the integrated casino.

Gross revenues from sales of real estate and club shares for 2013 of P175.3 million was lower by 46 percent compared with P323.6 million a year ago.

“Gross profit from sales of real estate and club shares for 2013 of P59.9 million was also lower than the gross profit of P206.4 million due to lower sales of real estate and club shares,” Belle said.

The company did not launch new real estate projects last year as it focused on the integrated casino project.

General expenses more than doubled to P642.6 million from P275.5 million on higher cost from the casino project, increased depreciation expenses and higher administrative expenses.

In March last year, the local units of Melco Crown formally inked its partnership with Belle for the integrated casino project, whose construction started early in 2010.

City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. It is scheduled to start operations this year.

The integrated casino project is Melco Crown’s first gaming foray outside Macau where it operates the City of Dreams and Altira Macau casinos. City of Dreams Macau is famous for its world-class gaming and entertainment offerings, including The House of Dancing Water Show and party place Club Cubic.

It will be the second casino complex to open at the Philippine Amusement and Gaming Corp.’s 120-hectare Entertainment City, which is groomed to become the Philippines’ version of the Las Vegas strip. In March last year, port mogul Enrique Razon opened the $1.2-billion Solaire Resort and Casino.

Melco Crown incurs higher $8.3-M Q4 loss

 Economy
Feb 142014
 
Melco Crown incurs higher $8.3-M Q4 loss

MANILA, Philippines – Macau-based casino giant Melco Crown Entertainment Ltd. continued to incur losses for its Philippine operations ahead of the opening of its $1.3-billion integrated resort complex in Manila. In a regulatory filing at the Hong Kong Stock Exchange, Melco Crown said its operating losses in the Philippines hit $8.29 million in the fourth quarter last year, up 13 percent from $7.32 million the previous period. “On a fully consolidated basis, we incurred approximately $8.3 million of operating expenses in the fourth quarter of 2013 at City of Dreams Manila,” Melco Crown said. Higher expenses resulted from “pre-opening costs as well as share-based compensation cost,” the gaming firm said. Melco Crown said it also incurred $10.1 million in capital lease charges relating to building lease payments for City of Dreams Manila. Its local unit, Melco Crown (Philippines) Resorts Corp., committed to pay $35 million as rent to Belle Corp., the leisure arm of the SM Group and the builder of the casino complex. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Melco Crown said it posted $37.23 million in operating losses from City of Dreams Manila for the entire 2013, more than five times the $7.32-million loss in 2012. When it opens in the third quarter this year, City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. Previously, the casino planned to offer only 242 gaming tables and 1,450 electronic gaming machines. It will be the second casino complex to Read More …

Index slips on continued profit taking

 Economy
Apr 242013
 
Index slips on continued profit taking

MANILA, Philippines – Share prices slipped for the second straight day yesterday on continued profit taking. The Philippine Stock Exchange index dropped 0.14 percent or 9.67 points to settle at 6,972.69, while the broader all shares index fell 0.31 percent or 13.61 points to 4,351.17. Profit takers continued pocketing gains made in the past few trading days, said BDO Capital and Investments Corp. president Eduardo Francisco. “That’s just a normal up and down movement of the market, nothing intrinsically negative about it,” Francisco said. The market bucked the trend in Wall Street, whose Dow Jones industrial average gained 1.1 percent or 152.29 points to close at 14,719.46 while the Standard & Poor’s 500 index climbed one percent or 16.28 points to 1,578.78 given the run up of selected companies. Locally, all counters, save for industrial companies that inched up 0.73 percent or 76.71 points to 10,606.43, were in the red. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The laggards were led by mining and oil that lost 1.23 percent or 253.83 points to 20,381.48. Turnover value jumped to P27.02 billion, boosted by a P15.26-billion share sale of Melco Philippines Resorts, from P11.82 billion on Tuesday. Decliners outplayed advancers, 109 to 65, while 36 stocks did not change. Casino and resort operator Melco Crown (-14.81 percent), Alliance Global Group Inc. (-3.43 percent) and Ayala Land Inc. (-1.59 percent) paced the losers.