Philippines gaming investor Belle Corp posted a 9 percent decline in net income in 2019, reaching P2.9 billion, driven mainly by a decline in consolidated revenues.
Belle said its overall operating performance was affected by weaker results at Pacific Online Systems Corporation, which leases online betting equipment to the Philippines Charity Sweepstakes Office (PCSO) – revenue from Pacific Online fell 49 percent in the year, due to competition from small-town lottery and temporary suspension of PCSO and keno operations in the third quarter of 2019.
Belle Corp’s principal asset is the City of Dreams Manila in Entertainment City, which is being leased on a long term basis to Melco.
The company, however, reported a lower share in gaming earnings at City of Dreams Manila, down 7 percent to P2.98 billion in 2019. To mitigate this, the company decreased its total costs and expenses by 16 percent. The resulting net income was P3.4 billion.
While gaming revenue at COD Manila and PCSO was down, Belle said it saw an 11 percent increase in revenues in its real estate operations, reaching P3.5 billion, with the majority coming from Belle’s lease of land and building comprising of City of Dreams Manila to Melco Resorts Philippines.