Belle Corporation has recently unveiled its financial performance for the first half of 2024, revealing a significant shift in its revenue streams and operational dynamics.

Belle Corporation’s Revenue Report for the First Half of 2024

Revenue Decline and Consolidated Figures

For the first half of 2024, Belle Corporation reported a net revenue of PHP 882.4 million (approximately US$ 15.4 million), which marks a substantial decrease of 33% year-on-year from PHP 1,309.6 million reported in 2023. This decrease represents a reduction of PHP 427.2 million compared to the previous year’s net revenue.

The company’s consolidated revenue also saw a decline, coming in at PHP 2,729.4 million, down 6% from the prior period. This overall reduction in revenue reflects the ongoing challenges Belle Corp is facing in various sectors of its business operations.

Performance of Lease and Real Estate Income

Despite the overall revenue drop, Belle Corp experienced a slight increase in lease income, achieving PHP 1,160 million in 2024. This increase highlights the company’s resilience in its real estate sector, with notable improvements in both sales of real estate and property management revenue. This growth in lease income provides a buffer against the decline in other revenue streams and indicates a stable area of performance amidst broader challenges.

Gaming Revenue Decline

One of the most significant areas of concern for Belle Corporation is its gaming revenue, which experienced a 24% decrease, totaling PHP 943 million in 2024. This decline includes the revenue share from Belle’s subsidiary, Premium Leisure Corp, which operates in partnership with Melco in City of Dreams Manila.

The drop in gaming revenue can be attributed to several factors, including increased operational costs and competitive market conditions. The impact of these factors has been significant, reflecting broader trends in the gaming industry and its sensitivity to external pressures.

Expense Analysis and Financial Strain

Belle Corporation’s financial results were further affected by substantial expenses. The total expenses, including general administrative expenses, property management services, and gaming operations maintenance, amounted to PHP 1,600 million. Additionally, PHP 339 million was allocated to interest and other financial expenses. Collectively, these expenses represent almost 70% of the company’s total gross revenue of PHP 2,729 million.

The high expense ratio underscores the financial pressures Belle Corp is under, with significant portions of revenue being consumed by operational and financial costs. This scenario emphasizes the need for strategic financial management to address the imbalances between revenue and expenditure.

Leadership Changes

In a notable development, Belle Corp Chief Financial Officer (CFO) and Treasurer, Maria Neriza C. Banaria, has announced her resignation, effective 14 August 2024. Her departure comes at a critical time as the company navigates through financial challenges. Aileen M. Malto has been appointed as Banaria’s successor, effective 15 August 2024.

Malto, who previously served as the CFO for SteelAsia Manufacturing Corporation and St. Luke’s Medical Center, brings over two decades of experience in finance. As a Certified Public Accountant, Malto is expected to provide a fresh perspective and strategic guidance to help steer Belle Corp through its current financial situation.

Strategic Moves and Future Outlook

In July 2024, Belle Corp’s subsidiary, Premium Leisure Corp, applied for a new casino license for Clark City. This move is part of the company’s strategy to expand its gaming operations and explore new revenue opportunities. Securing this license could potentially boost the company’s gaming revenue and provide a new growth avenue.

Belle Corporation’s recent financial performance reflects a challenging period marked by significant revenue declines and high operational costs. However, the company’s strategic adjustments, including leadership changes and expansion into new markets, are aimed at stabilizing operations and driving future growth.

Conclusion: The Financial Report

Belle Corporation’s financial results for the first half of 2024 reveal a complex picture of decreased revenues and significant expenses. While the decline in gaming revenue and net income is a concern, the increase in lease income and strategic initiatives like the new casino license application offer potential pathways for recovery and growth. The upcoming leadership transition will also play a crucial role in shaping the company’s future direction.

FAQs About Belle Corporation’s Financial Report for the First Half of 2024

1. What were Belle Corporation’s net revenue and consolidated revenue for the first half of 2024?

Belle Corporation reported a net revenue of PHP 882.4 million (approximately US$ 15.4 million) for the first half of 2024. The consolidated revenue for the same period was PHP 2,729.4 million.

2. How does Belle Corporation’s revenue for the first half of 2024 compare to the previous year?

Belle Corporation’s net revenue decreased by 33% from PHP 1,309.6 million in 2023 to PHP 882.4 million in the first half of 2024. The consolidated revenue saw a 6% decrease from the previous year.

3. What factors contributed to the decline in Belle Corporation’s revenue?

The revenue decline was primarily attributed to the exclusion of results from recently sold assets, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada. Additionally, high operational and financial expenses contributed to the revenue shortfall.

4. Did Belle Corporation see any increase in revenue in specific sectors?

Yes, Belle Corporation experienced a slight increase in lease income, which reached PHP 1,160 million in 2024. There was also an increase in sales from real estate and property management revenue.

5. How did Belle Corporation’s gaming revenue perform in the first half of 2024?

The gaming revenue experienced a 24% decrease, totaling PHP 943 million. This decline includes the share of revenue from Belle’s subsidiary, Premium Leisure Corp.

6. What were the total expenses incurred by Belle Corporation in the first half of 2024?

Belle Corporation’s total expenses amounted to PHP 1,600 million, which includes general administrative expenses, property management services, and gaming operations maintenance. Additionally, PHP 339 million was allocated to interest and other financial expenses.

7. What is the current financial condition of Belle Corporation regarding debt and cash reserves?

As of 30 June 2024, Belle Corporation’s total principal debt was PHP 400.7 million, with PHP 396 million in outstanding term loan borrowings. The company held PHP 88.6 million in cash and cash equivalents and maintained a PHP 240 million revolving credit facility, which remains undrawn.

8. Who has been appointed as the new CFO of Belle Corporation?

Aileen M. Malto has been appointed as the new CFO of Belle Corporation, effective 15 August 2024, succeeding Maria Neriza C. Banaria. Malto brings over two decades of finance experience, having previously served as CFO at SteelAsia Manufacturing Corporation and St. Luke’s Medical Center.

9. What strategic initiatives has Belle Corporation undertaken recently?

Belle Corporation’s subsidiary, Premium Leisure Corp, applied for a new casino license for Clark City in July 2024. This strategic move aims to expand the company’s gaming operations and explore new revenue opportunities.