Philippines real estate firm Belle Corp, which owns the land upon which City of Dreams Manila sits and takes a portion of gaming revenues, has reported a 31% decrease in net income to Php577 million in 1Q20 due primarily to “COVID-19 related developments.”
In a Friday announcement, Belle Corp revealed consolidated revenues had declined 25% to Php1.42 billion in the three months to 31 March 2020, including a 39% fall in its share of gaming revenues at CoD Manila – referred to as the company’s primary growth driver – to Php445 million.
“The decreases in revenues and profits resulted primarily from COVID-19 related developments,” Belle Corp said. “The effects of the pandemic began with declining tourist arrivals prior to the implementation of the enhanced community quarantines nationwide and was compounded by the temporary suspension of gaming operations at City of Dreams Manila on 16 March 2020 in compliance with government initiatives to contain the virus.”
Revenue from real estate operations, including the leasing of the land and buildings comprising City of Dreams Manila to Melco Resorts & Entertainment (Philippines), fell 8% to Php754 million although the CoD share held steady versus 1Q19. The decline in real estate revenue was primarily a result of lower sales and property management activity in the area affected by the Taal Volcano eruption in Tagaytay in January.
Nevertheless, Belle Corp said it will fulfil its dividend commitments to shareholders with a regular cash dividend of Php0.12 per share to be paid.
As previously reported by Inside Asian Gaming, City of Dreams Manila is currently preparing for a soft reopening in the coming weeks.
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