AGI posts P7.5-B net profit

Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) posted a P7.5-billion first-semester net profit attributable to equity holders of parent, down by 9 percent year-on-year on slower revenues from gaming, hotel and fast food businesses.

Including minority interest, six-month net profit was up 1.2 percent year-on-year to P11.37 billion, based on the company’s regulatory filing Tuesday.

For the second quarter alone, net profit slipped by 24 percent year-on-year to P3.55 billion.

AGI’s consolidated revenues for the six-month period amounted to P59.6 billion, almost flat from last year’s level of P60.8 billion. Revenues from the sale of goods—real estate, alcoholic beverages and snack products—increased by 3.6 percent year-on-year while rendering of services like gaming, hotel, quick-service restaurants and rentals dwindled by 5.9 percent over the same period primarily due to a 22-percent contraction in gaming revenues from where almost half of service revenues came from. Real estate sales increased by 8.7 percent and quick-service restaurant sales were up 17.5 percent year-on-year.

Costs and expenses decelerated by 4 percent to P45.1 billion due to cost-saving measures initiated by the subsidiaries. Costs of sales and services were down 2 percent while other operating expenses dropped by 9 percent.

Among key units, Megaworld posted a record-high net profit of P16.44 billion, which included P11.69 billion in non-recurring gains from the consolidation of property units while core net profit rose by 12.24 percent to P4.75 billion. Emperador’s net profit slipped by 3.6 percent to P3.06 billion on slower revenues while Travellers (RWM) grew its net profit by 25 percent to P2.88 billion due to cost management initiatives.

GADC’s net profit shrank by 15.3 percent year-on-year to P322 million on higher prices of imported raw materials and the shift in product mix while rentals and utilities, operating supplies, transportation and crew labor costs also expanded from a year ago.