Business World

AGI 9-month net income drops

- Arra B. Francia

ALLIANCE Global Group, Inc. ( AGI) posted a decline in earnings for the nine months ending September, as the growth in its property and quick- service restaurant segments failed to offset the slowdown in its liquor and integrated resorts businesses.

In a statement, the holding firm of tycoon Andrew L. Tan reported an 8% drop in attributab­le profit to P10.2 billion for the January to September period from P11 billion during the same period a year ago. Its nine-month net income stood at P15.2 billion, while consolidat­ed revenues for the period was at P100.3 billion. The company did not give comparable figures.

“The challenges we faced earlier this year required us to remain strong and perseverin­g, never losing our sights on the future,” AGI President Kingson U. Sian was quoted as saying.

The rental business of Megaworld Corp. posted a 5% increase in consolidat­ed revenues to P37.1 billion. Attributab­le profit for the period accordingl­y rose 11% to P9.98 billion.

Megaworld said it is on track to hit one million square meters (sq.m.) in leasable space this year, as it ended September with a total of 888,500 sq.m. The property giant said it remains bullish on the office rental sector, amid reports of a slowdown in investment­s from business process outsourcin­g firms.

Emperador, Inc. said its earnings grew by 18% in the third quarter, bringing its nine-month income to P4.4 billion.

Travellers Internatio­nal Hotel Group, Inc. (TIHGI) continued to reel from the effects of the shooting incident at Resorts World Manila last June, resulting in a net loss attributab­le to the parent of P34.13 million on a nine- month basis, against an attributab­le profit of P2.98 billion in the same period a year ago.

TIHGI however said visitors have started coming back to RWM, with foot traffic averaging at 25,000 per day inside the integrated resort and casino. Constructi­on for the third phase of the estate is also ongoing, slated to be completed by 2018.

Golden Arches Developmen­t Corp., the exclusive franchisee of the McDonald’s brand in the country, delivered earnings of P977 million as of end- September, up 19% from year-ago levels. The company saw a 13% increase in sales revenues, as it opened new stores. As of end- September, there were 547 McDonald’s stores against 500 a year ago.

In October, AGI announced its venture into the infrastruc­ture sector, through the submission of an unsolicite­d proposal to build a 2- kilometer monorail from Metro Rail Transit Line 3’s Guadalupe Station to Fort Bonifacio. The proposal was submitted through its newly incorporat­ed unit Infracorp Developmen­t, Inc.

The company noted it would also be on the lookout for more infrastruc­ture projects that would help provide transport solutions to various parts of the country.

“The various initiative­s we have undertaken and continue to pursue across all business segments are already poised for takeoff. We are therefore excited about the coming year which is even now presenting outstandin­g opportunit­ies,” Mr. Sian said. “We are very optimistic about next year’s growth opportunit­ies across our businesses.” —

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