August 02, 2015

BEL reports 1H15 net income of P836m, declares cash div

In a disclosure to the Exchange, Belle Corp (BEL) said its 1H15 net income reached P836m, down 50% YoY. Excluding the P1.2b reversal of provisions for probable loses posted in the same period last year, BEL’s 1H15 net income would have increased by 89% YoY. BEL grew its operating revenues by 250% to P2.8b due to higher revenue from its lease of property and gaming revenue share from the City of Dreams. 1H15 gaming revenue share stood at P361m, with 2Q15 gaming revenue share at P164m. BEL also declared a cash dividend of P0.095/sh for shareholders on record as of 14 Aug 2015 (ex-date: 11 Aug 2015) and payable date on 28 Aug 2015.

Our take: BEL's net income accounts for just 29% of the full-year consensus forecast of P2.84b. BEL’s revenues include the share of its 79%-owned Premium Leisure and Amusement Inc (PLC) in the operations of City of Dreams Manila (the higher of either 50% of EBITDA or 15% of net winnings from mass + 5% of VIP net winnings). Given that CoD Manila’s EBITDA is still negative, BEL’s revenues would represent its share of the gaming revenues. We expect the latter to sequentially improve as CoD Manila ramps up operations. In the meantime, BEL’s cash dividend translates to a yield of 2.6% based on the last closing price of BEL. – WealthSec