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Alliance Global profit up 17% in 1st half

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ALLIANCE GLOBAL Group, Inc

ALLIANCE Global Group, Inc. grew its attributable profit by 17% in the first half of 2018, driven by the double-digit growth across its property, liquor, and fastfood businesses, alongside the recovery in its gaming unit.

In a statement issued Friday, the holding firm of tycoon Andrew L. Tan reported a net income attributable to equity holders of the parent of P7.9 billion, versus the P6.9 billion it realized in the same period a year ago.

This was supported by a 9% increase in revenues to P73.2 billion for the first semester.

“All the group’s major subsidiaries delivered strong topline and bottomline results, reflecting the improving outlook in their respective business segments,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.

Megaworld Corp., AGI’s property unit, saw its attributable profit rise 13% to P7.3 billion in the first half. The residential and rental units pushed consolidated revenues 10% higher to P26.8 billion.

Megaworld also noted that its hotel business saw significant growth at 10% to P715 million for the period, following the addition of more hotel rooms under its portfolio.

Emperador, Inc. delivered an 18% uptick in attributable profit to P3.3 billion, helped by an 8% increase in consolidate revenues to P19.5 billion.

The whiskey business — which accounts for 27% of total profit — posted a 77% increase to P890 million, as sales from brands The Dalmore and Jura boosted revenues by 16% to P6.2 billion.

The whiskey business supported the slower growth of the brandy business, which grew by 4% in terms of revenues to P13.6 billion.

The attributable profit of Travellers International Hotel Group, Inc. (TIHGI) stood at P1.7 billion in the first half, recovering from the P375 million it generated in the same period a year ago. To recall, the company’s bottomline took a hit last year due to the shooting incident in Resorts World Manila that left 37 people dead.

Gaming revenues slipped 3% to P4.5 billion, although TIHGI said gross gaming revenues have seen improvements on a quarterly basis.

Meanwhile, Golden Arches Development Corp. booked a net income of P741 million, 26% higher year-on-year. The local franchisee of the McDonald’s brand benefited from the addition of 19 stores to its portfolio, ending June with 585 stores.

Sales revenues then expanded 11% to P13.5 billion, with same-store sales growth at 5.7%.

“We have consistently grown our reliable sources of income and have improved our operating leverage. All of these should support us as we navigate the challenging economic environment moving forward,” Mr. Tan said.

Shares in AGI gained 1.29% or 16 centavos to close at P12.58 each at the Philippine Stock Exchange on Friday. — Arra B. Francia