Belle Corp Reports Profit as Manila Enters Strict Lockdown

Belle Corp reports profitable rental income from City of Dreams Manila, but casinos prepare for a new two-week strict lockdown period starting on August 6.

For the six months to June 30, 2021, Philippines real estate company Belle Corporation has reported a 244% increase in consolidated net income and a 27% increase in consolidated revenues due to profitable results at City of Dreams Manila, a world-class resort casino.

Belle Corp with 27% Increase in Consolidated Revenue for H12021

Belle Corp, the owner of the buildings and land of City of Dreams Manila, has earned a share of gaming revenues from the resort and additional rental income as part of the agreement allowing Melco to use the land. The company said that it improved its results for the first half of 2021 despite the pandemic. According to the company’s Q1 report, consolidated revenue amounted to $50.8 million, which is almost $11 million more, compared to the same time in 2020, including the 225% increase in its share of gaming revenue from City of Dreams Manila to $16.1 million.

Revenues from the land lease to Melco Resorts, however, declined 11% year over year. In the first six months of 2020, the figure was $26.6 million, but this dropped to $23.8 million for the same period this year. Net income for the period was $20.8 million.

Revenues from Pacific Online Systems Corporation, which leases online betting equipment to the Philippine Charity Sweepstakes Office, increased by 14% year-on-year to US$4.1 million. Premium Leisure Corp (PLC), of which Belle Corp has a 78.7% stake, owns Pacific Online Systems with 50.1%.

Manila returns to strict lockdown

Casinos in Manila are going to close again, as Philippines President Rodrigo Duterte said that the National Capital Region would go under the strictest Enhanced Community Quarantine (ECQ), tighter than the General Community Quarantine (GCQ), for two weeks. Under the ECQ restrictions, all indoor attractions, including facilities like casinos, will suspend their operations. The measures would come into effect from August 6 and remain until August 20.

As of July 26, gaming facilities in Manila cut down their capacity from 50% to 40%. However, those measures were still under GCQ. This summer, the government would enforce the ECQ measures for the third time in Manila, entering into strict lockdown.

At the beginning of the pandemic last year, Manila entered ECQ and PAGCOR, the Philippines gaming regulator, ordered all casinos on the main island to close from March 15, 2020. The government eased measures from June 2020, and the operators in Manila were allowed to resume operations at 30% capacity in August 2020, and in September, the City of Dreams Manila underwent a trial run at the 30% capacity.  After that, in December 2020, the Philippines extended measures in Metropolitan Manila until January 31.

The strict ECQ measures were enforced for a month again from March 29 to April 30, 2021.

Presidential Spokesman Harry Roque issued a statement, saying that the decision to put in effect ECQ again was not easy, adding that the government spent a lot of time debating the proposal.