ANDREW L. TAN-LED conglomerate Alliance Global Group, Inc. (AGI) posted a 34% increase in attributable profit for the first nine months, driven by office and mall operations.
For the January-to-September period, AGI’s attributable net income rose to P17.4 billion from P13 billion a year earlier, while consolidated net income reached P24.8 billion, up from P20.05 billion in the same period last year, the company said in a press release on Wednesday.
Consolidated revenues totaled P143.4 billion. AGI has yet to release its full report for the third quarter.
“AGI’s robust performance in the first three quarters of the year is largely due to our diversified business portfolio and product mix. During the period, we saw a sequential improvement in office and mall rentals, and steady contribution from our residential and hospitality segments,” AGI President and Chief Executive Officer Kevin L. Tan said.
“Despite the global economic challenges, our spirits business has managed to gain traction in the international market.”
“What provided an added lift in Group earnings and margins is our ongoing cost management efforts which we have implemented across the business. As we build a culture of cost awareness, we hope to further enhance our operating efficiencies moving forward,” Mr. Tan added.
AGI’s interim results included one-time gains of P3.4 billion from the deconsolidation of its quick service restaurant business, Golden Arches Development Corp. (GADC).
The group continues to hold a 49% stake in GADC, now accounted for as an associate. Excluding one-time items, AGI’s core net income grew 10% year on year to P21.2 billion, while core attributable net profit rose 8% to P13.9 billion, supported by strong office and mall performance, steady residential contributions, and stable hospitality operations.
Property unit Megaworld Corp. led group earnings, with net income rising 16% to P15.9 billion from P13.7 billion.
“Consolidated revenue grew by 8% year on year to P64.4 billion, buoyed by robust office, mall and hotel revenues, in addition to healthy real estate sales,” the company said.
Megaworld Premier Offices saw a 16% increase in office rental income to P11.1 billion, supported by rent escalations and an occupancy rate of 87%, while Megaworld Lifestyle Malls contributed P5.1 billion, up 13% on higher foot traffic, new tenants, and a 93% occupancy rate. Megaworld Hotels & Resorts accounted for P4.1 billion in revenue, reflecting a 13% increase. Residential revenues grew 6% to P40.2 billion, benefiting from demand in the upper-mid to high-end segment.
Liquor unit Emperador, Inc. posted P4.7 billion in attributable net profit and P41.2 billion in consolidated revenue, driven by improved domestic brandy sales, stronger whisky sales, and expanded international sales. “The [Scotch Whisky] segment is now gaining better traction of the international market for its highly popular single malt whiskies like The Dalmore, Jura and Tamnavulin,” AGI said.
In leisure and tourism, Travellers International Hotel Group, Inc. recorded gross revenue of P28.6 billion, with gross gaming revenue (GGR) of P23.5 billion and non-gaming revenue of P5.1 billion.
“In the third quarter, GGR rose by 7% QoQ as both mass and VIP GGR improved from the previous quarter’s levels on better win rate and steady mass volume. Attributable net income grew markedly by 31% year on year to P651 million, benefitting as well from its ongoing cost management measures,” the company said.
AGI shares closed at P6.42 apiece on Wednesday, down 12 centavos or 1.83%. — A.G.C. Magno
