Tan’s AGI delivers double-digit Q3 profit growth
THE holding firm of tycoon Andrew L. Tan expanded its earnings by more than a fifth in the third quarter of 2018, driven by the double-digit growth across its property, gaming, and liquor businesses.
In a regulatory filing, Alliance Global Group, Inc. (AGI) said net income attributable to the parent rose 21.5% P4.21 billion in the three months ending September, against P3.46 billion posted in the same period a year ago. This followed a 16.4% increase in revenues to P38.99 billion.
For the nine-month period, the listed conglomerate’s net income attributable to the parent then grew by 18.49% to P12.06 billion, on the back of an 11.78% uptick in revenues to P112.15 billion.
“We are inspired by the group’s strong performance and we will continue to work very hard to deliver good results across all our business segments moving forward,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.
Megaworld Corp. delivered an attributable profit of P11.3 billion during the nine-month period, 13% higher year-onyear.
While residential revenues accounted for bulk of its revenues, the leasing business provided the lift for this period. Rental income from office building and malls surged by 19% to P10.5 billion, boosted by higher occupancy rates and increased rent.
Emperador, Inc. pushed its attributable profit 16% higher to P5.1 billion, on the back of an 11% uptick in revenues to P30.5 billion. The company is banking on its product diversification strategy to further improve profitability moving forward.
Resorts World Manila operator Travellers International Hotel Group, Inc. realized an attributable profit of P1.8 billion for the period, reversing its net loss of P34 million in the same period a year ago. Gross revenues meanwhile rose by eight percent to P17 billion.
The integrated resort and casino reported growth across its VIP and mass table segments. Blended hold rate also improved to 5.5% from 4.8% a year ago. Non-gaming revenues further boosted earnings, as it grew by 11% to P3.2 billion.
Meanwhile, Golden Arches Development Corp. booked a 3% increase in attributable profit to P991 million, as same-store sales growth increased by 4%. With this, sales revenues rose by 8% to P20.3 billion in the nine months ending September.
The exclusive franchisee of the McDonald’s chain in the country ended September with a total of 603 store, compared to 566 in 2017. The company has been widening its reach to areas outside Metro Manila, with almost 60% of the stores located in the provinces.
“We recognize the many exciting opportunities in the market, both domestic and international, as we continue to pursue our aggressive expansion program with an investment commitment of P240-billion up to 2020. At the same time, we intend to manage our costs and keep our gearing levels low as we remain vigilant of the global economic headwinds,” Mr. Tan said.
Shares in AGI gained 0.38% or four centavos to close at P10.54 each on Wednesday. —