Alliance Global Q1 income up 18% to P4.91 B

MANILA, Philippines - Alliance Global Group Inc. (AGI) of tycoon Andrew L. Tan recorded strong double-digit profit growth in the first quarter, buoyed by the property, liquor and gaming businesses.

The hefty growth is expected to continue for the rest of the year owing to positive macroeconomic conditions, its top executive said.

In a disclosure, AGI said its net profit rose 18 percent to P4.91 billion while core net income, which excludes non-requiring and derivatives-related items, climbed 21 percent to P3.58 billion.

“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to outsourcing and tourism — all growth drivers of the Philippine economy,” said Tan, chairman of AGI.

“These businesses will hit double-digit growth in revenues and net profits,” he added.

In the first three months, consolidated revenues gained a quarter to P30.39 billion from P24.38 billion a year ago.

AGI is into property development (Megaworld Corp.) liquor (Emperador Distillers Inc.), and tourism and gaming (Travellers International Hotel Group Inc.). The three key businesses accounted for 84 percent of the conglomerate’s net income.

Total revenues of Megaworld hit P8.1 billion, up 16 percent from P7 billion a year ago. The property firm’s net income rose 15 percent to P1.8 billion.

Megaworld and its subsidiaries Empire East Land Holdings and  Suntrust Properties recorded P18 billion in reservation sales for the first quarter, higher than the P14 billion last year.

The office space portfolio of Megaworld is expected to increase to 500,000 square meters by the end of this year.

For its part, Travellers, which operates the eight-hectare Resorts World Manila hotel and casino complex, reported a 47-percent surge in revenues to P10.5 billion while its net income gained 16 percent to P995 million in the first quarter amid competition from the newly-opened $1.2-billion Solaire casino and hotel complex along Manila Bay.

Travellers, which plans to conduct an $800-million initial public offering in the local bourse, is a joint venture between Malaysia’s Genting Bhd. and AGI.

AGI subsidiary Emperador grew its income 40 percent to P1.4 billion as its revenues gained 17 percent to P6.5 billion due to higher brandy sales.

Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines, contributed P113 million to AGI’s profits, up more than half from P73 million a year ago.

Global Estate Resorts Inc., a developer of integrated tourism projects in Boracay, Tagaytay and Batangas, contributed P53 million of earnings to AGI, higher than the P35 million last year.