Alliance Global logs 17-B net income

Alliance Global Group, Inc. (AGI) recorded a 5 percent improvement in net income to 17.2 billion in the first nine months of 2014 on consolidated revenues of 89.5 billion.

“The group’s financial performance continues to be strong. We have a lot of confidence in our businesses, which are genuine game changers in their respective industries and our long-term growth is underpinned by a consumption-led economic growth and a young consumer market,” said AGI president Kingson U. Sian.

Driven by AGI’s subsidiaries – Megaworld Corporation, Emperador Inc., Travellers International Hotel Group, Inc., and Golden Arches Development Corp. (GADC) – net income attributable to AGI shareholders reached 11.4 billion during the first nine months of this year from 11.5 billion in the same nine-month period in 2013.

The share of minority interests to consolidated net income rose to 33 percent this year from 30 percent last year.

AGI had higher ownership in Emperador and Travellers International for the most part of 2013 and this was reduced when both subsidiaries went public in the latter part of the third quarter and in the fourth quarter of last year, respectively.

Megaworld reported a net income of 19.03 billion during the first nine months of 2014, 192 percent higher year- on- year, while Emperador Inc. reported 4.6 billion in net income.

Travellers International, which runs Resorts World Manila and eventually Bayshore City Resorts World, earned a net income of P4.0 billion this year, reflecting a 12 percent growth from last year.

GADC, which holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand, realized a net income of P406 million during the first nine months of 2014 on the back of a bigger network of 432 branches all over the country.

Moving forward, AGI’s strategy is to constantly remain focused on its core competence. Sian said “we have always been very passionate about our businesses and we are very excited about the future prospects of Megaworld, given its unparalleled dominance in township development.”

He said Emperador has growth opportunities in the offing following the acquisition of a Scotch whisky company while Travellers’ ongoing expansion of Resorts World Manila will potentially double gaming capacity by 2017.

On the other hand, GADC plans to expand the number of McDonald’s branches to 500 by end of next year. (JAL)