MANILA, Philippines – Alliance Global Group Inc. (AGI), the listed holding firm of tycoon Andrew Tan, reported a 51 percent jump in its first quarter earnings this year to P1.37 billion, boosted mainly by its real estate business.
In a statement, AGI said consolidated revenues rose six percent to P8.86 billion with the real estate development business accounting for 50 percent and the consumer brand food and beverage business contributing 41 percent of the total. The balance came from interest and other income.
Property arm Megaworld Corp. posted a net profit of P1.02 billion, contributing P482 million to AGI’s net income which is slightly higher than the previous year’s P469 million. Revenues, however, fell five percent to P4.45 billion.
Revenues from AGI’s consumer brand food and beverage business, however, rose six percent to P3.63 billion. Led by the McDonald’s franchise, AGI’s other leading brands include Campbell’s, Ernest & Julio Gallo, McKester’s and Pik-Nik.
“Even in these economically challenging times, Alliance Global remains steadfast in its commitment to deliver quality products and services that best meet the needs of its customers,” said Kingson Sian, president of AGI.
Amid a difficult business environment, AGI remains on the lookout for new opportunities to improve its profitability.
“The company, recognizing the resilience of the Philippines, will continue to explore investments in key, high-growth industries in the country, particularly in the tourism sector,” Sian said.
Last year, AGI forged a joint venture with Star Cruises Ltd., through its subsidiary, Travellers International Hotel Group Inc., to build Newport City, located across from Terminal 3 of the Ninoy Aquino International Airport.
Star Cruises is part of the Malaysian conglomerate Genting Berhad, and is the world’s third largest cruise line operator.
AGI will invest nearly $500 million to develop Newport City, which will host the all-suite Maxims Hotel, the five-star Marriott Hotel and a budget hotel called Remington Hotel. The hotel series will have a total capacity of 1,540 rooms.
Set for completion in 2009, the entire hotel project will generate more than 5,000 jobs in the next 12 months.
Travellers will also build Bayshore City as the country’s largest 24x7 integrated tourism city in the Manila Bay area. It will host hotels, an entertainment complex, museums and restaurants. The project is expected to create over 100,000 jobs both in direct and indirect employment.