AGI 9-month net income drops

Font Size


ALLIANCE GLOBAL Group, Inc. (AGI) posted a decline in earnings for the nine months ending September, as the growth in its property and quick-service restaurant segments failed to offset the slowdown in its liquor and integrated resorts businesses.

In a statement, the holding firm of tycoon Andrew L. Tan reported an 8% drop in attributable profit to P10.2 billion for the January to September period from P11 billion during the same period a year ago. Its nine-month net income stood at P15.2 billion, while consolidated revenues for the period was at P100.3 billion. The company did not give comparable figures.

“The challenges we faced earlier this year required us to remain strong and persevering, never losing our sights on the future,” AGI President Kingson U. Sian was quoted as saying.

The rental business of Megaworld Corp. posted a 5% increase in consolidated revenues to P37.1 billion. Attributable profit for the period accordingly rose 11% to P9.98 billion.

Megaworld said it is on track to hit one million square meters (sq.m.) in leasable space this year, as it ended September with a total of 888,500 sq.m. The property giant said it remains bullish on the office rental sector, amid reports of a slowdown in investments from business process outsourcing firms.

Emperador, Inc. said its earnings grew by 18% in the third quarter, bringing its nine-month income to P4.4 billion.

Travellers International Hotel Group, Inc. (TIHGI) continued to reel from the effects of the shooting incident at Resorts World Manila last June, resulting in a net loss attributable to the parent of P34.13 million on a nine-month basis, against an attributable profit of P2.98 billion in the same period a year ago.

TIHGI however said visitors have started coming back to RWM, with foot traffic averaging at 25,000 per day inside the integrated resort and casino. Construction for the third phase of the estate is also ongoing, slated to be completed by 2018. 

Golden Arches Development Corp., the exclusive franchisee of the McDonald’s brand in the country, delivered earnings of P977 million as of end-September, up 19% from year-ago levels. The company saw a 13% increase in sales revenues, as it opened new stores. As of end-September, there were 547 McDonald’s stores against 500 a year ago.

In October, AGI announced its venture into the infrastructure sector, through the submission of an unsolicited proposal to build a 2-kilometer monorail from Metro Rail Transit Line 3’s Guadalupe Station to Fort Bonifacio. The proposal was submitted through its newly incorporated unit Infracorp Development, Inc. 

The company noted it would also be on the lookout for more infrastructure projects that would help provide transport solutions to various parts of the country. 

“The various initiatives we have undertaken and continue to pursue across all business segments are already poised for takeoff.  We are therefore excited about the coming year which is even now presenting outstanding opportunities,” Mr. Sian said. “We are very optimistic about next year’s growth opportunities across our businesses.” — Arra B. Francia