Property, gaming businesses lift AGI’s net income to P30b

ALLIANCE Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, saw its attributable net profit hit a new high of P19.6 billion, up 21 percent from the year on the back of the strong performance of its property and gaming businesses.

Net income also hit an all-time high of P30.3 billion, up 20 percent from 2022 despite higher inflation, which pushed overall costs and expenses up during the period, AGI said Tuesday in a disclosure to the stock exchange.

Consolidated revenues reached P211.2 billion, reflecting a 15- percent growth from P183.6 billion the year before.

“2023 was a historic year for the group as it delivered excellent performance across all of its businesses, led by its real estate, tourism and consumer segments. This was achieved even amid heightened competition in the domestic and global market, various macro challenges in some key markets, rising cost pressures and higher interest rates,” said AGI chief executive Kevin Tan.

He said most of the company’s businesses posted higher results in terms of net income and sales versus pre-pandemic levels.

“Such strong performance has encouraged us to carry on with our aggressive business strategies and expansion plans across our diversified portfolio,” Tan said.

Tan expects the policy rate cuts, easing inflation and improving economic and business environment to boost demand for housing, tourism and staycation activities this year.

Megaworld, AGI’s property unit, posted a 17-percent increase in net income to P69.7 billion in 2023, driven by higher leasing revenues from its mall, hotel and office businesses.

Megaworld’s reservation sales surged to P139 billion, boosted by project launches during the year amounting to P73 billion.

Travellers International Hotel

Group Inc, the group’s leisure and tourism arm and owner-operator of Newport World Resorts (NWR) also posted an 89-percent increase in net income to P2 billion as net revenues hit a new record high of P31.9 billion, up 19 percent year-on-year.

This was driven by the resurgence in tourism and meetings, incentives, conferences and exhibition (MICE) activities. Gross gaming revenues went up by 7 percent to a new high of P34.2 billion.

Liquor unit Emperador Inc. also booked consolidated revenues of P65.6 billion, up 5 percent from a year ago level largely due to higher whiskey sales.