Belle posts P60-M H1 profit despite P9.5-M Q2 loss

Leisure property and gaming firm Belle Corp. incurred a net loss of P9.52 million in the second quarter this year, mainly due to higher foreign exchange losses and interest expense.

The loss was also due to lower revenues during the period under review from P119.47 million to P240.82 million, the company said in a statement.

But for the six months ending June, Belle reported a P60.2 million net profit, slightly higher than the previous level’s P60.1 million even as net revenues fell 15.33 percent to P284.93 million.

The decrease in revenues was attributed to lower sales of real estate products from P321 million to P273.94 million.

While costs and expenses in the second quarter declined by 43.35 percent, other charges went up 44.81 percent to P79.18 million from P54.68 million.

Belle said interest expense grew 15 percent to P118.5 million due mainly to higher interest rates. With the depreciation of the peso against the dollar to 53.11 to $1 as of June 30, Belle posted a P1.2 million foreign exchange transaction loss for the first half of the year on its dollar denominated debt, which totals $22 million compared to a forex gain of P6.1 million in 2005.

"With the launches for Belle’s newest real estate projects, The Verandas at Saratoga Hills and The Ranch at Plantation Hills scheduled in June and in December 2006, real estate sales during the first half were thus impacted by the resulting timing of the revenues from these projects which are to be realized in later periods," the company said.

Equitized net earnings from associated companies increased 21 percent to P40.9 million from P33.9 million.

Among its subsidiaries or affiliates are Highlands Prime Inc. which posted a net profit of P53.6 million and Pacific Online Systems Corp. with a net income of P30.4 million.

Highlands Prime is also engaged in real estate development within the Tagaytay Highlands and Midlands complexes, while Pacific Online leases on-line equipment to the Philippine Charity Sweepstakes Office for their lottery operations in the Visayas and Mindanao.

As of end-June this year, Belle’s total liabilities amounted to P4.85 billion as against P4.91 billion in end 2005.