AGI reports 9-month profit of P15.2 billion

MANILA — Alliance Global Group, Inc. (AGI), the conglomerate of tycoon Dr. Andrew L. Tan, reported a net profit of P15.2-billion in the first nine months of 2017 as consolidated revenues reached P100.3-billion.

The Group’s diversified businesses posted a mixed outcome during the nine-month period, with its real estate operations and quick service restaurants recording very strong earnings, thereby mitigating the weaker performance of its liquor and integrated resorts operations. Net income to owners stood at P10.2-billion, 8 percent lower from its level a year ago of P11-billion.

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

“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,” Sian adds.

Megaworld Corporation, the country’s largest township developer, registered a sharper 12 percent yearon-year growth in net income to P10.3-billion during the nine-month period. Consolidated revenues grew 5 percent to P37.1-billion. The residential segment delivered total realized gross profit of P10-billion helped by higher project completion. Rental income continued to grow strongly, rising by 19 percent to P8.8-billion, as its office and commercial operations benefited from improving occupancy rates and rents. The increasing share of recurring income brought Megaworld’s EBITDA some 12 percent higher to P15.8-billion. EBITDA margins stood at 42.5 percent from only 40 percent a year before.

Emperador Inc. registered a net income of P4.4 billion in the first nine months, helped by a healthy 18 percent growth in profit in the third quarter. During the period, the world’s largest brandy company continued to excite the market with its new product offerings both in the domestic and international markets, such as its spicy cinnamon brandy Emperador Hotshot for Emperador Distillers, Shackleton Blended Malt Scotch Whisky for Whyte and Mackay, and Terry White for Bodegas Fundador in Spain. Consolidated revenues stood at P27.6-billion, with its brandy business contributing 72 percent of total, while its Scotch whisky segment accounting for the balance of 28 percent.

Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila (RWM), recorded EBITDA of P2.6 billion for the nine-month period on gross revenues of P15.7 billion. Gross gaming revenues stood at P12.8-billion as RWM ramped up its casino business following the June 2 incident. Visitation in the complex has also recovered, with average daily visitors of 23,000 in the third quarter and 25,000 during the first nine months of the year. This provided support to its non-gaming revenues which managed to grow by 5 percent amidst improved hotel and MICE operations.

Golden Arches Development Corporation (GADC), which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported a net income of P977 million, reflecting a 19 percent year-onyear increase. Sales revenues maintained its strong trajectory, growing 13 percent year-on-year to P18.5 billion as systemwide same-store sales growth reached 5.8 percent. The company ended the ninemonth period of 2017 with a total of 547 stores nationwide compared with 500 stores a year before.

The newest addition to the Group is INFRACORP Development, Inc., which marks AGI’s foray into infrastructure development.