AGI Q2 profit falls after RWM incident

ALLIANCE Global Group, Inc. (AGI) posted a 20% drop in its attributable income in the second quarter, as a shooting incident at Resorts World Manila in June, and the lackluster performance of its liquor business weighed on its bottom line.

A regulatory filing showed the holding firm of businessman Andrew L. Tan reported P3.15 billion in net income attributable to the parent for the April to June period, from P3.94 billion during the same period a year ago. This dragged the first-half profit 8% lower to P6.7 billion.

Consolidated revenues for the second quarter fell 2.51% to P33.14 billion, while first half revenues were flat at P66.8 billion.

“While revenues remained flat, net profit and the portion attributable to owners took in the impact of the temporary non-operational days of Resorts World Manila (RWM) businesses in June this year,” the company said.

Travellers International Hotel Group, Inc. (TIHG), which owns and operates the integrated resort and casino, took a hit after its gaming operations were shuttered for 27 days in June, after an arson attack that left 38 people dead.

TIHG recorded a net loss attributable to the parent of P311.21 million for the second quarter, according to a separate regulatory filing. This is against the P638.61 million it generated in the same period in 2016.

This brought TIHG’s first half earnings to P374.76 million, a 79% decline from P1.79 billion recorded during the same period in 2016.

TIHG now plans to convert the second floor of RWM into a retail zone. It will further be developing three hotels namely, Hilton Manila, Sheraton Manila Hotel, and Maxims II, which will add around 940 rooms, new gaming and retail spaces, and six basement parking decks.

“We must be dynamic and aggressive to make sure that RWM is ready for increased competition and the expanding market. RWM remains committed in implementing necessary enhancements that ensures the safety, security and enjoyment of our customers and guests,” TIHGI President and Chief Executive Officer Kingson U. Sian was quoted as saying in a statement.

AGI’s liquor business through Emperador, Inc. saw its secondquarter profit fall by 41% to P1.19 billion from P2.03 billion a year ago, following softer domestic liquor consumption during the period. For the first half, Emperador’s net income slipped 20% to P2.7 billion, from the P3.4 billion it realized in the first half of last year.

“We remain confident of our growth prospects, recognizing the various opportunities that continue to present themselves in the economy,” Mr. Sian, who also sits as AGI’s president, said in a separate statement.

Megaworld posted a 10% rise in attributable profit to P3.6 billion in the April to June period, pushing the first semester figure 11% higher to P6.44 billion.

AGI reported Golden Arches Development Corp., the local franchisee of the McDonald’s brand, grew its bottom line by 20% to P595 million in the first half, as sales revenues came in at P12.2 billion. The fastfood restaurant enjoyed a 12% uptick in revenues boosted by systemwide samestore sales growth alongside its ongoing store expansion program. Second quarter figures were not available.

Golden Arches ended June with a total of 533 stores, against the 494 from the same period a year ago.

This year, AGI has committed to spend P80 billion in capital expenditures for all business segments.

“Our growth strategies are deliberate and allow us to keep on moving forward, optimistic that our capabilities and resolve will carry us through time,” Mr. Sian added.

Shares in AGI gained eight centavos or 0.59% to P13.60 each on Monday. —