AGI reports 13% drop in income in 9 months

Alliance Global Group Inc. (AGI), the conglomerate of tycoon Andrew L. Tan, reported a net income to P15.2 billion in the first nine months,13 percent lower than the P17.3 billion posted in the same period last year as some businesses such as Resorts World Manila encountered challenges in the early part of the year.

Consolidated revenues, meanwhile, stood at P100.3 billion during the period.

The company said the different 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, eight percent lower from its level a year ago of P11-billion.

But AGI president Kingson Sian said the company has already put in place measures to recover from the challenges.

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

“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,” he added.

Among the different businesses, Megaworld Corp. posted a 12 percent growth in net income to P10.3-billion during the nine-month period.

Emperador Inc., meanwhile, 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.

Travellers International Hotel Group Inc., owner and operator of RWM, meanwhile, recorded EBITDA of P2.6 billion for the nine-month period on gross revenues of P15.7 billion.

The company said gross gaming revenues stood at P12.8billion as RWM ramped up its casino business following the June 2 shooting incident of a lone gunman that resulted in the death of 37 people including the assailant himself.

AGI said food traffic in the complex has also recovered, with average daily visitors at 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 five percent amidst improved hotel and MICE operations.

Actual net income for RWM was not immediately available.

Golden Arches Development Corp. which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported a net income of P977 million.

This showed a 19 percent year-on-year increase as sales revenue 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 nine-month period with a total of 547 stores nationwide compared with 500 stores a year before.

Sian is optimistic that in the end, AGI’s hard work will soon pay off.

“We are very optimistic about next year’s growth opportunities across our businesses,” he said.