Alliance Global sees double-digit income hike

MANILA, Philippines - Riding high on a booming economy, a resurgent business process outsourcing (BPO) industry and stable domestic consumption, Alliance Global Group Inc. said it expects its net income to grow by at least 38 percent this year and in 2011.

During the company’s annual stockholders meeting yesterday, AGI president Kingson Sian said net earnings are forecast to rise to P6.62 billion this year from P4.8 billion in 2009. The group’s cash position is also seen to reach to at least P60 billion by next year.

 “We have built a solid base to ensure a promising future for AGI. With the resources that we have and the strength of each of our businesses, we are confident of our ability to sustain our momentum further in the coming years. We expect another 38 percent growth in net income in 2011,” Sian said.

Andrew Tan, chairman and chief executive officer of AGI, said the listed holding firm, which has emerged better and stronger from the global financial crisis, is gearing up for an even better year in 2010 on strong performances of its four major business segments - real estate (through Megaworld Corp.), food and beverage (Golden Arches Development Corp. and Emperador Distillers Inc.) and integrated tourism development (Travellers International Hotel Group).

To capitalize on an improving economy, backed by renewed optimism of local and foreign investors, AGI is expanding existing businesses by launching more residential and office building projects, new liquor products and additional McDonalds branches. 

Sian said the company, through Travellers International, will continue the development of the country’s first integrated tourism estate in Newport City called Resorts World Manila.

Just across from Ninoy Aquino International Airport Terminal 3, Resorts World Manila is a world-class facility which includes three hotels totaling 1,226 rooms, a 1,532-seat Newport Performing Arts Theatre, retail and entertainment facilities.    It is planning to build additional hotel rooms that will bring total rooms to about 1,500 rooms, making it the largest hotel owner and operator in the country.

Apart from Resorts World Manila, Travellers International will also develop a larger integrated tourism estate called Resorts World Bayshore City along Roxas Boulevard. The project is envisioned as a themed development with around 2,500 hotel rooms and several leisure, retail and entertainment facilities.

 “We are excited by the prospects this project will offer. Not only will it create more than 100,000 direct and indirect jobs for Filipinos, but it will also further enhance the country’s tourism industry and open doors for more business opportunities for your company,” Tan said.

Sian reported that the Megaworld Group of Companies, including Empire East and Suntrust brands, registered P33 billion in sales in the first eight months of the year.

To date, Megaworld has six township developments under way in the most strategic locations in Metro Manila, in addition to several luxury residential condominium projects in the heart of the Makati central business district.

For the remainder of the year, it is set to launch projects in Manila through Palm Bay, McKinley Hill, the Makati CBD, Newport City, and North Bonifacio CBD.

GADC, the group’s quick-service restaurant unit, expects to end the year with a total of 310 outlets and is looking to build 25 or more stores in 2011.

Sian reported that Emperador Distillers, has remained the country’s most profitable liquor firm. Its flagship products, Emperador and Generoso brandies, as well as new products Emperador Light Brandy and flavored alcoholic beverages The Bar are the market leaders in key segments of the Philippine spirits market.