Alliance Global reports 5% increase in 2016 profit

ALLIANCE GLOBAL Group, Inc. (AGI) recorded a 5% increase in profits through more efficient operations in 2016, amid flat earnings across its businesses.

In a statement, the holding firm owned by billionaire Andrew L. Tan booked a net income of P22.8 billion for the full year, from P21.7 billion in 2015. Net income attributable to shareholders jumped 6% to P14.8- billion from year- ago levels. AGI said its consolidated revenues were flat at P139.7 billion last year from P139.09 billion in 2015. “Since about three to four years ago, the Group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” AGI President and Chief Operating Officer Kingson U. Sian was quoted as saying in a statement. Property arm Megaworld Corp. recurring profit rose 12% to P11.6 billion in 2016, on the back of a 4% increase in revenues to P46.8 billion. Net profit attributable to shareholders rose 11% to P11.3 billion from P10.21 billion in 2015.

Emperador, Inc., meanwhile, saw an 11% increase in net income of P7.7 billion last year driven by sales of higher-margin brandy and whisky products. Revenues slipped 6% to P41.01 billion in 2016, from P43.64 billion in the prior year, “attributed primarily to the termination at end 2015 of the distribution of an agency brand from the Scotch whisky business.”

Travellers International Hotel Group, Inc., operator of Resorts World Manila, booked a 15% drop in net income to P3.4 billion last year, from P4.02 billion reported for 2015. The decrease largely reflects unrealized foreign exchange losses on Travellers’ outstanding bond amounting to $300 million. As the peso weakened against the dollar, its financing expenses almost doubled to P1.46 billion from P775.4 million. At the same time, Travellers posted a 2.3% decrease in gaming revenues to P23.65 billion from P24.22 billion, as punters dropped on VIP tables P303.55 million or 17% below the P367.61 billion registered a year earlier.

Meanwhile, Golden Arches Development Corp., the local operator of the McDonald’s brand, said its profit reached a record P1.2 billion in 2016, on the back of P22.6 billion in revenues. Systemwide same-store sales growth, cost efficiencies, and ongoing store expansion contributed to the firm’s 7% year- on-year rise in earnings. McDonald’s added 41 new stores in 2016, closing the year with 520 locations. “Despite our aggressive expansion strategy, our balance sheet remains healthy and financial gearing still very comfortable, with much room to take on new opportunities that may come our way,” Mr. Sian said. Shares in AGI went up 3.24% to close at P13.40 apiece on Thursday. —