AGI earnings increase 21% in Q1

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DR. ANDREW L. TAN, Alliance Global Group, Inc. chairman

ALLIANCE GLOBAL Group, Inc. (AGI) delivered a 21% increase in attributable profit in the first quarter of 2019, driven by the steady growth of its property, liquor, and quick-service restaurant businesses.

In a regulatory filing, the holding firm of tycoon Andrew L. Tan said net income attributable to the parent hit P4.35 billion from January to March, against the P3.6 billion it generated in the same period a year ago.

This followed a 19% uptick in revenues to P41.05 billion.

Property unit Megaworld Corp. accounted for 36% of AGI’s revenues for the quarter, followed by liquor manufacturer Emperador, Inc. at 27%. Travellers International Hotels Group, Inc. (TIHGI) and Golden Arches Development Corp. (GADC) contributed 17% and 18%, respectively, while the remaining two percent came from other businesses.

“We will continue to offer our premium products and excellent services to the market as we remain optimistic of the opportunities that lie ahead… We are mindful of the challenges in the external environment, but we will strive to work harder to sustain such good results,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.

Megaworld’s attributable profit went up 16% to P3.8 billion, on the back of strong residential sales and leasing income. Reservation sales alone reached P48 billion, while rental income from the lease of office and commercial spaces grew 16% to P3.9 billion.

The listed property developer also benefited from the expansion of its hotel segment, as revenues surged 56% to P574 million for the quarter. It now has a total of 5,175 keys under its hospitality portfolio.

For Emperador, net income attributable to the parent improved 10% to P1.7 billion after revenues also rose 13% to P11 billion. The listed firm reported strong sales in the local market while increasing contributions from its international presence.

The growth in Megaworld and Emperador offset the slower performance of TIHGI, which owns and operates integrated resort and casino Resorts World Manila (RWM). The listed gaming firm saw net income drop 45% to P243 million, even as revenues jumped 46% to P6.9 billion.

TIHGI incurred higher finance costs for the period as it pursued its expansion, including the addition of three new hotels and the opening of another gaming area for RWM’s Grand Wing.

Meanwhile, GADC — the exclusive franchisee of the McDonald’s brand in the country — reported a 16% increase in net income to P382 million. Revenues also climbed 13% to P7.5 billion supported by same-store sales growth of 4.8%.

The company opened 14 new stores and closed down one branch during the quarter, bringing its total store network to 633 by end-March.

Shares in AGI slipped 0.72% or 10 centavos to close at P13.80 each at the stock exchange on Monday. — Arra B. Francia