AGI kicks off 2025 with strong Q1 results

MANILA, Philippines — Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, kicked off the year with strong first quarter results, supported by robust contributions from its real estate, spirits manufacturing and hospitality businesses.

AGI’s net income during the quarter surged by 66 percent year-on-year to P11 billion, which included one-time gains resulting from the deconsolidation of Golden Arches Development Corp. (GADC) in the conglomerate’s financial statements.

GADC, where AGI holds a 49-percent interest, is now treated as an associate after securing a new license term from McDonald’s Corp.

Netting out the gains, AGI said it was able to post a 14-percent growth in normalized net income to P7.5 billion from a year ago level of P6.6 billion.

AGI’s normalized net income to owners also grew by 18 percent year-on-year to P5 billion.

The group generated revenues of P51.9 billion, a three-percent improvement from last year’s P50.6 billion.

AGI president and CEO Kevin Tan, said AGI’s top line was driven largely by healthy real estate sales, robust revenues from its tourism-related segments and strong leasing income from both its premium offices and lifestyle malls.

He said these businesses are primary beneficiaries of resilient consumer spending.

“AGI started the year with notably strong results in the first quarter even amidst domestic and global challenges mainly brought about by the ongoing US tariff issues,” Tan said.

“More importantly, our first quarter performance also underscores the efficient cost management measures we continue to implement across all our business segments. Our prudent and disciplined business practices should give us more operating leverage and help us stay on course even with this challenging environment,” he said.

AGI’s property arm Megaworld registered a 16-percent year-on-year jump in attributable net income to P5.1 billion during the first quarter as a result of sustained growth in all of its key business units.

Cost efficiencies helped global brandy and whisky conglomerate Emperador end the quarter with a seven-percent growth in net income to P1.85 billion from a year ago.

Travellers International, AGI’s leisure and tourism arm and the owner of Newport World Resorts, posted a 42-percent growth in EBITDA to P2.1 billion, driven by its intensified cost management efforts.

Gross revenue reached P9.7 billion supported by higher gross gaming and non-gaming revenues during the period.

Despite ongoing macro headwinds, Tan said that AGI is maintaining its optimistic outlook for the balance of the year.

“We have laid out exciting plans across our various business segments, ready to take advantage of the resilient consumer spending and a resurgence in global economic activity. We look forward to sustaining our robust start and being able to finish strong,” he said.