ALLIANCE Global Group, Inc. (AGI), the listed holding firm of tycoon Andrew L. Tan, posted a 32% drop in earnings for the first quarter due to business disruptions by the coronavirus disease 2019 (COVID-19) pandemic.
In a statement Tuesday, AGI said it booked an attributable net profit of P3 billion for the January to March period, down from P4.4 billion in the same period last year.
Its consolidated revenues decreased 7% to P38 billion as both the pandemic and the Taal Volcano eruption in January affected all its business units.
Megaworld Corp., the listed property developer of the group, posted a 9% decline in attributable earnings to P3.5 billion. The performance was attributed to delayed project completions in its residential segment and booking cancellations in its hotel segment.
Travellers International Hotel Group, Inc., the operator of Resorts World Manila, swung to a net loss of P1 billion from a net income of P244 million last year. The suspension of gaming operations in light of the COVID-19 pandemic and the eventual cancellation of large group activities pulled its gross revenues down 19% to P6.9 billion.
Listed Emperador, Inc., which manufactures brandy and whisky distributed to global markets, saw a 16% reduction in attributable earnings to P1.5 billion. The imposition of a liquor ban locally during the implementation of the lockdown resulted in a 3% slide in revenues to P10.7 billion.
AGI’s stake in Golden Arches Development Corp., more known as McDonald’s Philippines, generated 72% lower profits at P108 million. Several stores were temporarily closed during the period because of the Taal Volcano eruption in January and the quarantine in March.
“We started 2020 with twin challenges, and these are changing the way we live and do business today,” AGI Chief Executive Officer Kevin L. Tan said in the statement.
Despite the challenges, Mr. Tan said he believes AGI’s business model is “sound and sustainable” as its township developments are expected to remain relevant in the future and its entry into international markets for its spirits business helps reduce risks.
He added the company has taken digital transformation initiatives early on, which will help it adjust to the changing environment due to the pandemic.
“[W]e see a silver lining to this crisis. Our new learnings and our ability to adapt to emerging trends should make our organization better equipped and even stronger beyond this crisis,” Mr. Tan said.
AGI shares at the stock exchange gained 30 centavos or 4.62% to close at P6.80 each on Tuesday. — Denise A. Valdez