BELLE Corp., which owns half of the City of Dreams Manila, on Friday said it incurred a lower income last year as a result of higher nonrecurring income in the previous year relating to the operation of its integrated resort and casino.
The company said its net income for 2014 reached P2.55 billion, down by 30 percent from the previous year’s P3.63 billion, which included the termination income paid for by the Philippine affiliates of Macau’s Melco Crown Entertainment Ltd. (MCE), the owner of the other half of the City of Dreams Manila.
In 2013 it earned some P949.6 million in earnings for the commencement of the MCE’s lease on Belle’s property to be used by the casino. There were also some gains on the share swap of the company’s shares in Highlands Prime Inc.
Excluding nonrecurring items, Belle’s consolidated net income would have increased by approximately P464 million, or 81 percent, to P1.04 billion in 2014 from the previous year’s P572 million, the company said.
Gross revenue reached P3.16 billion, higher by 21 percent compared to P2.62 billion in 2013, due to the consolidation of Pacific Online revenues starting in June 2014 totaling P1.03 billion and higher interest income on finance-lease accounting amounting to P231.6 million.
There were also higher sales of real estate and club shares amounting to P125 million, gaming income share from the City of Dreams Manila by Premium Leisure Corp. amounting to P38.8 million and dividend income from SM Prime Holdings Inc. amounting to P22.4 million.
“The increase in gross revenue was offset by the nonrecurring termination income in 2013, amounting to P949.6 million,” the company said.
Gross revenue from sales of real estate and club shares for the period at P300.3 million was higher by P125 million compared with the P175.3 million it made the previous year.
Premium Leisure’s operations last year were highlighted by the soft opening of the City of Dreams Manila last December, as part of its concession agreement with the government.
The company has an operating agreement with MCE that accords it a share of gaming revenues or earnings at the resort.
Premium Leisure reported a net income of about P1.34 billion for 2014, compared to a net loss of P8.7 million in 2013.
Pacific Online, meanwhile, reported a net income of P366.5 million and revenues of P1.73 billion last year. Both figures posted an increase from the previous year.