Belle Corp’s Q1 income down 35% due to lower forex gains

Listed property and gaming firm Belle Corp. reported a 35-percent drop in its first quarter net income this year to P45 million from P69.7 million the previous year, mainly due to lower foreign exchange gains.

In its quarterly report filed with the Securities and Exchange Commission, Belle said it booked foreign exchange gains of only P16.5 million compared with P42.3 million a year earlier.

Net revenues amounted to P164.4 million, practically the same as the year ago’s P165.5 million.

Gross sales value or the total contract price of all sales and reservations booked during the period, however, increased 43 percent to P264.7 million, largely driven by the strong market reception to its newest project, The Verandas at Saratoga Hills, and higher sales of club shares.

Income from real estate operations reached P57.4 million, up 16 percent from P49.6 million due to higher gross profit.

Gross profit grew 16 percent to P89.3 million from P76.7 million as revenues came mostly from recently launched projects The Heights and The Verandas — which carried higher gross margins compared to the mix of products comprising revenues.

Total operating expenses, including depreciation and Amortization, likewise went up 18 percent to P31.8 million from P27 million with the increase mainly due to higher project launching expenses.

As of end-March this year, Belle completed the fourth phase of its farm lots project, Plantation Hills at the Greenlands. The first phases of Plantation Hills were completed in 2005.

Belle also started construction of the newest phase (The Ranch) during the first quarter of the year. In the third quarter of 2006, the company started construction of The Verandas, its newest residential subdivision located near Plantation Hills.

Equitized net earnings from associated companies amounted to P11.9 million, 66 percent lower than the previous level’s P35.3 million.

Among these associated companies include 36 percent-owned Highlands Prime Inc. and 30 percent-owned Pacific Online Systems Corp.

Belle said its affiliate Sinophil Corp. entered into an agreement with Union Bank of the Philippines whereby Sinophil acquired a loan obligation of Legend International Resorts (HK) Ltd. which was secured by one billion Sinophil shares.

Part of the consideration to be paid to Union Bank under this transaction is 1,244 square meters of land in Parañaque which Belle agreed to transfer to Union Bank on behalf of Sinophil at the agreed valuation price of P30,000 per square meter.