AGI income up 4% to P8B in 1st half

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ALLIANCE Global Group, Inc. (AGI) reported its attributable income rose 4% to P8.1 billion in the first half, driven by double-digit growth in revenues.

In a statement, AGI said its consolidated revenues jumped 15% to P82.8 billion, as all its major subsidiaries contributed to the “robust topline growth.”

These include its real estate development arm Megaworld Corp., gaming and leisure operator Travellers International Hotel Group, Inc., liquor subsidiary Emperador, Inc. and quick-service restaurants unit Golden Arches Development Corp. (GADC).

Megaworld saw a 16% rise in attributable profit to P8.3 billion. Consolidated revenues increased 18% to P31.7 billion after “sharp increases” in the contributions of its core operating segments, AGI said.

Travellers International, owner and operator of Resorts World Manila (RWM), reported its attributable net income was halved to P844.71 million, even as gross revenues surged 50% to P16.57 billion.

Emperador posted a net income attributable to the parent of P3.25 billion in the first half, up 2% year on year, following higher sales from its international business.

GADC, which holds the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand, reported a 1% increase in attributable net income to P751 million during the first half.

GADC’s sales revenues increased by 14% to P15.4 billion, “supported by a healthy same-store sales growth of 5.5% and its ongoing new store additions.”

The number of McDonald’s stores stood at 642 by end-June from 620 stores in end-2018. Of these stores, 77 are in the NXTGEN format, which is equipped with a multi-point service system.

“We believe the Group’s strong topline performance was achieved on the back of a highly favorable domestic economy which cushioned the impact of some challenges in the global market,” said Kevin L. Tan, AGI chief executive officer, in a statement.

“However, we note increasing cost pressures, some brought about by the very competitive environment, which have impacted on our margins. Despite this, we remain confident that the collective growth strategies we have put in place — largely through product and market diversification, international pursuits for our spirits business and our ongoing expansion projects — are sound and will soon bear fruit,” he added.

AGI, the investment holding firm of billionaire Andrew L. Tan, has not submitted its financial report for the second quarter.

On Wednesday, shares in AGI fell by 5.81% to P13.30 each. — V.V.Saulon