Alliance Global income up 179% to P6.19 billion in 1st quarter

MANILA, Philippines - Alliance Global Group Inc. (AGI), the investment holding company of tycoon Andrew Tan, reported a consolidated net income of P6.19 billion in the first quarter of the year, up 179 percent over the same period last year, buoyed by strong revenues from its various projects.

In a disclosure to the Philippine Stock Exchange, AGI said its flagship subsidiary Megaworld Corp. remains a major growth driver. It contributed about 33 percent to AGI’s consolidated revenues of P17 billion, which went up 62 percent from P10.5 billion a year ago.

The first quarter profit includes a non-recurring gain of P3.35 billion from the acquisition of a subsidiary. However, even without the non-recurring gain, income still grew in the first quarter, said AGI chief finance officer Dina Inting.

“Alliance Global is on a strong growth trajectory. Our net income, excluding the non-recurring gain, is up by 28 percent to P2.85 billion,” she said.

The strong performance of Megaworld came from strong sales for McKinley Hill, Newport City, and Manhattan Garden City and higher lease income from various business process outsourcing (BPO) office projects.

Meanwhile, AGI’s non-real estate businesses, driven by liquor firm Emperador Distillers Inc., McDonald’s franchisor Golden Arches Development Corp., hotelier Travellers International Hotel Group Inc. and leisure company - Global-Estate Resorts Inc. accounted for 67 percent of the conglomerate’s revenues.

“With its diverse interests, AGI is in a unique position to seize opportunities in the marketplace and continue its strong growth momentum,” said Inting.

It also said Megaworld and Emperador Distillers recorded healthy net profits of P1.24 billion and P458 million, respectively.

“The combined cash position of AGI’s other business units, including Travellers, reached P64.8 billion, a result of higher operating efficiency,” AGI also 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.

Alliance Global subsidiary Travellers, through its partner Genting Hong Kong, is behind Resorts World Manila, the first integrated tourism complex in the country.

Its other business unit, Golden Arches, owns the McDonald’s franchise in the country while its mixed-used township project, Newport City is operating well across the Terminal 3 of the Ninoy Aquino International Airport in Pasay City.

Global-Estate Resorts, formerly Fil-Estate Land Inc., meanwhile, owns around 2,900 hectares of prime land in key tourism areas all over the Philippines. It currently owns and controls more than 10 percent of the total land area in the island of Boracay.