MANILA, Philippines - The strength of the real estate, gaming and liquor businesses allowed Alliance Global Group Inc. (AGI) of property tycoon Andrew L. Tan to record double-digit profit growth in the first quarter.
In a statement, AGI said its net income rose by a tenth to P3.94 billion in the first three months from P3.56 billion a year ago. Revenues increased 3.2 percent to P31.23 billion from P30.26 billion.
Major income contributors are property firm Megaworld Corp. that accounted for 38 percent of earnings or P1.51 billion, followed by hard liquor unit Emperador Inc. at 38 percent or P1.5 billion, and casino operator Travellers International Hotel Group Inc. at 18 percent or P717 million.
McDonald’s franchiser Golden Arches Development Corp. contributed P85 million while Global-Estate Resorts Inc. (GERI) accounted for P85 million of earnings, with the balance of P62 million coming from other businesses.
AGI said Megaworld posted a 49-percent income growth to P2.69 billion, including a P604-million non-recurring gain, in the first quarter from P1.81 billion a year ago “due to strong residential sales in its various townships.â€
Emperador profits jumped 19 percent to P1.72 billion from P1.45 billion on the back of strong sales growth. Emperador’s revenues rose 17 percent to P7.69 billion from P6.6 billion “primarily due to growth in cases sold during the period,†AGI said.
The improvement in win rate significantly boosted the first quarter earnings of Travellers Group, the owner and operator of Resorts World Manila casino complex. Travellers Group said its income surged 72 percent to P1.7 billion from P995.4 million.
Travellers Group, a joint venture between the world’s third-largest cruise line operator Genting Hong Kong and AGI, is spending around $600 million as it pursues Phase 2 and 3 of Resorts World Manila.
McDonald’s master franchise holder Golden Arches said total revenues climbed 13 percent to P4.36 billion in the first quarter from P3.85 billion.
“This is primarily due to the opening of 37 new restaurants (23 company-owned, 13 franchised and one joint venture), re-imaging of 45 existing restaurants, expansion of business extensions, the introduction of new products and aggressive advertising and promotional campaigns,†Golden Arches said.
However, high cost of sales and services dragged the earnings of Golden Arches to P171 million, down 27 percent from P234 a year ago. The company had 412 restaurants as of end-March from 375 branches last year.
Tourism estate developer GERI said its income rose 27 percent to P103 million from P81 million. Real estate sales came mainly from sale of lots in Newcoast Shophouse District, Newcoast Boutique Hotel and Newcoast Village in Boracay; Sta. Barbara Heights in Iloilo City, and Twin Lakes Domaine Le Jardin in Laurel, Batangas.