Belle expects higher earnings this year as it ramps up projects

MANILA, Philippines - Leisure and gaming firm Belle Corp. is hoping to post a higher net profit this year as it steps up the construction of its flagship Highlands project as well as its $750 million integrated resort complex, Belle Grande Manila Bay, along Roxas Blvd.

On the sidelines of the company’s annual stockholders meeting yesterday, Belle vice-chairman Willy N. Ocier said he expects local casino gaming revenues to reach $3 billion a year beginning 2016, assuming three of four license operators start operating.

Belle exécutive vice-président and chief financial officer Manuel Gana said the group expects to complete and launch the entire gaming and hotel complex, with a gross floor area of more than 25 hectares, by 2013. The complex will house 1.8 hectares of gaming space with around 350 gaming tables and 1,900 slot machines.  

The main podium will feature six luxury hotel towers with more than 800 rooms under three brands of five-star and six-star quality.

The resort will also contain more than two hectares of retail and dining operations. The mall, with a gross floor area of 60,000 to 80,000 square meters, is expected to be completed within 12 to 18 months.

“We expect Belle Grande to be a key attraction in the Bagong Nayong Pilipino area and as such it will help to redefine the Manila experience for both tourists and residents alike,” Ocier said.

Ocier said while Belle, 40 percent owned by the SM Group, is bullish about the expected long-term contribution of the Belle Grande project, they will continue to focus on their “franchise” business in the Tagaytay Highlands area.  

He said Belle still owns around 780 hectares of landbank that will assure the group of long-term profitability.

Belle has earmarked P4 billion for its capital expenditure program this year, lower than the P5 billion spent in 2011. Funding will come from a P4.5 billion stock rights offering.  

Belle reported a 57 percent drop in net profit in 2011 to P200.52 million on lower real estate sales and contributions from associated companies.

Revenues fell 45 percent to P696.62 million while equity in net earnings from Highlands Prime Inc. and Pacific Online Systems Corp. dipped 10 percent to P140.48 million.