Alliance Global net earnings jump 40% to P9.5B in 2010

MANILA, Philippines - Alliance Global Group Inc. (AGI), the holding firm for the various business interests of property tycoon Andrew Tan, said yesterday its consolidated net earnings jumped 40 percent last year to P9.5 billion, mainly due to the robust growth in property and liquor sales and strong revenues from its casino and tourism business.

In a filing with securities regulators, AGI also said its full-year net income attributable to shareholders grew 44 percent to P6.9 billion from P4.8 billion in 2009, resulting in an earnings per share of P0.71.

Consolidated revenues rose 15 percent to P44.5 billion from P38.8 billion a year earlier.

AGI’s property arm, Megaworld Corp. accounted for 40 percent of the investment firm’s total earnings, mainly coming from higher sales of urban residential projects including McKinley Hill, Newport City and Manhattan Garden City and increased lease income from its businesss process outsourcing (BPO) office projects.

The group’s consumer food, beverage, as well as integrated tourism projects through Golden Arches Development Corp., Emperador Distillers and Travellers International Hotel Group, respectively, contributed 60 percent to AGI’s total income.

Tan said Megaworld and hard liquor unit Emperador Distillers Inc. saw their net profit rise to record levels of P5.1 billion and P1.6 billion, respectively.

As of end-December last year, the combined cash position of the different business units stood at P47.3 billion as a result of higher operating efficiency.

“We believe that all our business units will continue to sustain their strong growth momentum in 2011. We are ready to fasttrack our real estate developments and capture new growth opportunities in the tourism sector, especially with our investment in Global-Estate Resorts (GERI). Both real estate development and integrated tourism will be our main drivers of long-term value creation that is sure to benefit our shareholders,” Tan said.

Emperador Distillers produces top brandy brands Emperador and Generoso and newer labels Emperador Light and The Bar flavored alcoholic beverages, both of which are enjoying brisk sales. The company has recently launched The Bar Silver and The Bar Citrus Tequila variants.

Meanwhile, Golden Arches Development Corp. is the master franchise holder of fastfood giant McDonald’s in the country, while Travellers International is the developer of Resorts World Manila, the first integrated tourism complex in the country, located across from NAIA Terminal 3 at the Newport City cyber tourism zone in Pasay City.