Property, gaming boost AGI profits in Q1By Doris C. Dumlao
Philippine Daily Inquirer
Tycoon Andrew Tan-led Alliance Global Group Inc. grew its first-quarter net profit by 18 percent year on year to P4.91 billion on higher earnings chalked up by its property development, gaming and beverage businesses.
Core net income attributable to AGI shareholders likewise increased by 21 percent to P3.58 billion from the level a year ago, the company disclosed to the Philippine Stock Exchange on Wednesday.
Property development arm Megaworld Corp. posted a 15-percent rise in first-quarter net profit to P1.8 billion. Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to total revenue.
Leisure estate and gaming unit Travellers International Hotel Group—a partnership with the Genting group of Malaysia, which has made plans to go public—grew its first-quarter net profit by 16 percent year on year to P995 million. Travellers operates Resorts World Manila, the first integrated tourism estate in the country.
Emperador Distillers Inc. posted a 40-percent jump in first-quarter net profit to P1.4 billion.
Megaworld, Travellers and Emperador collectively contributed 84 percent of the conglomerate’s net profit.
“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to BPO and tourism—all growth drivers of the Philippine economy. These businesses will hit double-digit growth in revenues and net profits,” AGI chairman Tan said in a press statement.
Consolidated revenues went up by 25 percent to P30.39 billion in the first three months from the level a year ago.
Real estate arm Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to its total revenue.
Megaworld’s three-month revenues stood at P8.1 billion, up 16 percent year on year. As an indicator of future growth, Megaworld and its subsidiaries also posted over P18 billion in reservation sales for the first quarter, higher than the P14 billion level in the same period last year, as the group reported brisk sales from the residential projects in its townships, particularly Newport City, McKinley West, McKinley Hill and Eastwood City.
Megaworld also cited strong leasing income from its BPO and retail portfolio.
Travellers posted total revenues of P10.5 billion in the first three months, up by 47 percent from a year ago.
Meanwhile, Travellers has sought regulatory approvals for an initial public offering worth as much as P34.8 billion.
Based on a preliminary prospectus filed with the Securities and Exchange Commission, Travellers is planning to sell up to 1.49 billion shares with an overallotment option of up to 223.56 million shares at a maximum price of P23.38 per share. About 10 percent of its equity will be held by the public after the offering.
Up to 745.21 million common shares will consist of a primary offering while an equal number will constitute secondary shares.
Including the overallotment option, the deal size could increase to about P40 billion.
Five international banks were hired to arrange the proposed offering: Bank of America Merrill Lynch, CIMB, Maybank, Religare Capital Markets and UBS.
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