Philippines real estate firm Belle Corp, the local partner of Melco Resorts & Entertainment in City of Dreams Manila, has reported an 89% year-on-year decline in net revenues to Php222 million (US$4.5 million) for the first six months of 2020, with COVID-19 heavily impacting its share in gaming revenue.
“The decreases in revenues and profits resulted primarily from COVID-19 related developments,“ said Belle Corp after gaming revenues fell 87% to Php248 million (US$5 million).
“The effects of the pandemic began with declining tourist arrivals prior to the implementation of the 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.”
Gaming operations remained suspended throughout the entire second quarter, Belle Corp noted.
The company also saw a 68% decrease in revenues to Php180 million (US$3.7 million) at Pacific Online Systems Corporation (PCSO), of which subsidiary Premium Leisure Corporation owns a 51% stake. PCSO leases online betting equipment to the Philippine Charity Sweepstakes Office for their lottery and keno operations.
It wasn’t quite so bad on the real estate side of things, however, where operations suffered a more subdued 10% decrease in revenue to Php1.58 billion (US$32.1 million) of which Php1.34 billion (US$27.3 million) came from Belle’s lease of the land and buildings comprising City of Dreams Manila to Melco Resorts & Entertainment (Philippines).
With City of Dreams still officially closed, Belle Corp said the property “is using this time to prioritize the health of its employees, to establish protocols that ensure a safe working and recreational environment and to support the government in keeping people safe in restarting the economy.”