Alliance Global builds up 9-month bottom line

MANILA, Philippines – Alliance Global Group,Inc. (AGI), the Andrew Tan-led investment holding company grew its net income by seven percent to P17.3 billion in the nine months to September on the back of cost efficiencies across all business segments.

Net income attributable to common shareholders stood at P11 billion, up four percent from a year ago.

In the third quarter alone, AGI’s net income increased 26 percent to P6 billion, its strongest quarterly performance since the second quarter of 2013.

AGI president Kingson Sian said the company has successfully implemented its growth strategies.

“We have been deliberate in the execution of our growth strategies for each of our key businesses, bearing in mind the changing competitive landscape in the various sectors we are in,” Sian said.

This as the company realized in revenues of P34.5 billion as a result of sustained growth in rentals, stronger contribution from its overseas liquor business, healthy sales from its quick service restaurants and a recovery in gaming revenues.

AGI’s businesses are property through Megaworld, resorts and gaming through Travellers, food through McDonald’s operator Golden Arches, and liquor through Emperador.

”Megaworld’s aggressive thrust to grow its investment properties is now paying off as this has resulted in an increased recurring income stream which has insulated the company from the vagaries of the property cycle.  Travellers’ expanded amenities at Resorts World Manila continued to make it a popular integrated resorts destination despite intensifying competition in the gaming sector.  In the case of the McDonald’s operations of Golden Arches, its store expansion program further enhanced its cost management, significantly boosting its bottomline performance.  Meanwhile, Emperador’s global strategy has provided it with another leg of growth as it expands its international presence.

The company now has an unrivaled portfolio of quality and well-known foreign and local brandy and whisky products, paving the way for its premiumization strategy in the domestic liquor industry,” Sian said.

Megaworld posted a healthy 11 percent year-on-year growth in net income to P9.3 billion for the first three quarters of the year, helped by an improvement in operating margins, while Emperador posted a net income of P4.9 billion during the period, up five percent year-on-year.