AGI eyes tie-ups with tech firms

Font Size

ALLIANCE Global Group, Inc. (AGI) wants to partner with tech companies as it embarks on a five-year innovation program that will digitally transform its businesses.

In a statement issued Thursday, the listed conglomerate said the innovation program will focus on addressing the needs of its subsidiaries so that they can adapt to the technological changes they are facing.

“We are open to acquiring platforms, and even companies, that focus on particular innovations that are relevant to our various businesses,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.

“Part of the program is to be able to partner with relevant providers and technology-makers. Our vision is to make each company become ready for the future of business in the next 10 years.”

AGI’s strategies will include introducing smart home technology for its property, e-commerce, logistics, transportation, property technology, and customer service management.

“This will also give us the opportunity to look for other new technological innovations, platforms, and companies where we can invest in, in order to support and improve our current business operations, and at the same time, make them profitable businesses on their own.”

Under this strategy, AGI will form a core group composed of representatives from its subsidiaries, which will be encouraged to come up with their own initiatives.

AGI’s subsidiaries include Megaworld Corp. for property development, Emperador, Inc. for liquor, Travellers International Hotel Group, Inc. (TIHGI) for gaming, Golden Arches Development Corp. (GADC) for quick-service restaurants, and Infracorp Development, Inc. for infrastructure.

Megaworld, for instance, has already launched its iTownship concept in 2018. This program promotes innovation in design, home technology, smart mobility, and environmental sustainability that seeks to prepare Megaworld’s townships for the demands of the future.

For its part, Emperador is looking to develop an e-commerce platform for its consumer products. The liquor manufacturer has also upgraded its facilities for brandy and whisky in Spain and some distilleries in Scotland.

TIHGI, which owns and operates Resorts World Manila, wants to further enhance its mobile application to provide convenience to its guests when making restaurant and hotel reservations.

GADC, the local licensee of the McDonald’s brand, has also been rolling out what it calls as NXTGEN stores, or those that feature self-ordering kiosks, modern menu boards, and card payment acceptance.

AGI has committed to spend P85 billion in capital expenditures for 2019, as the company ramps up the expansion of its property and gaming businesses.

AGI booked a net income attributable to the parent of P4.35 billion in the first quarter of 2019, 21% higher year on year after gross revenues also improved by 19% to P39.47 billion.

Shares in AGI rose 0.66% or 10 centavos to close at P15.30 each at the stock exchange on Thursday. — Arra B. Francia