Alliance Global profit soars to P19.2 billion

MANILA, Philippines —  Earnings of Alliance Global Group Inc. (AGI), the conglomerate led by tycoon Andrew Tan, soared in the first half on the back of the increasing contribution from its real estate business and tourism-related segments.

AGI reported a 39 percent year-on-year jump in its net income to P19.2 billion from January to June as group revenues reached P100.9 billion, inclusive of one-time gains from the deconsolidation of its quick service restaurants business, Golden Arches Development Corp. (GADC).

GADC, a company where AGI retains a 49 percent stake, was deconsolidated in its financial statements earlier this year and is now treated as an associate.

AGI said the move resulted in one-time gains of P3.4 billion.

Excluding such one-offs and netting out all GADC items in the financials to allow for comparability, AGI’s normalized net income rose by 19.1 percent year-on-year to P15.1 billion.

Normalized consolidated revenues amounted to P87.1 billion, up by three percent year-on-year, while attributable net profit hit climbed by 23 percent to P10.1 billion.

“AGI delivered strong results in the first half of the year, benefitting from a buoyant domestic economy despite ongoing global uncertainty,” AGI president and CEO Kevin Tan said.

Tan said the group took advantage of pockets of opportunities in the market during the period to boost residential and retail sales as well as office take-up.

“Our tourism and leisure segments also enjoyed increased activities and occupancy, tapping into the increasing demand for staycations and MICE events. Even our spirits segment sustained its recovery in sales, a testament to the strength of its brands that have been expanding their presence in the local and international markets,” he said.

Tan said that AGI’s strong performance was also accompanied by ongoing cost-efficiency measures, which were implemented across all business segments.

“By managing our costs, we hope to enhance our operating leverage to ensure a more robust growth in profit as the economy further recovers,” he said.

Megaworld’s attributable net income rose by 25 percent to P10.7 billion in the first half as robust showing across all its business segments boosted revenue by 10 percent to P43.1 billion.

A second quarter recovery, meanwhile, helped buoy Emperador’s performance in the first semester, bringing consolidated revenue to P28.2 billion and net income to owners to P3.9 billion.

For its part, Travellers International, the group’s leisure and tourism arm, registered an attributable income of P315 million on gross revenues of P18.9 billion.

AGI said that Travellers intends to continue with its cost management efforts to allow the company to further enhance its operating efficiency moving forward.