Alliance Global books P11.4-B profit in Jan-Sept

MANILA, Philippines - Alliance Global Group Inc. (AGI) of tycoon Andrew L. Tan booked slightly lower earnings in the first nine months of the year as it reduced ownership in two of its business units.

In a statement, AGI said its net income fell to P11.4 billion in the January to September period from P11.5 billion last year.

AGI said share of minority interests to consolidated net income rose to 33 percent this year from 30 percent last year.

The company said it had higher ownership in Emperador and Travellers International for the most part of 2013 but this was reduced when both subsidiaries went public in the latter part of the third quarter and in the fourth quarter of last year, respectively.

However, the company noted an uptick in its recurring earnings in the first nine months of the year, driven by sustained growth in its business units.

AGI said its recurring net income skipped five percent to P17.2 billion as consolidated revenues reached P89.5 billion.

“The group’s financial performance continues to be strong. We have a lot of confidence in our businesses, which are genuine game changers in their respective industries and our long-term growth is underpinned by a consumption-led economic growth and a young consumer market,” said Kingson U. Sian, president and chief operating officer of AGI.

Megaworld remained AGI’s largest income contributor, followed by Emperador Inc., Travellers International and Golden Arches Development Corp. (GADC).

Megaworld’s net income ballooned to P19.03 billion during the first nine months of 2014 due to strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City, as well as higher leasing income from its office and retail portfolio.

Liquor unit Emperador also improved its net income to P4.6 billion on the back of higher margins and greater volume in the third quarter.

Travellers International, which runs Resorts World Manila and eventually Bayshore City Resorts World, earned P4 billion this year, reflecting a 12-percent growth from last year.

GADC, which holds the exclusive right to operate restaurants in the Philippines under the ‘McDonald’s’ brand, realized P406 million during the first nine months of 2014 on the back of a bigger network of 432 branches all over the country.

“We have always been very passionate about our businesses and we are very excited about the future prospects of Megaworld, given its unparalleled dominance in township development; Emperador given growth opportunities in the offing following the acquisition of a Scotch whisky company; Travellers’ ongoing expansion of Resorts World Manila that will potentially double gaming capacity by 2017; GADC with the plan to expand the number of McDonald’s branches to 500 by end of next year,” Sian said.