Alliance Global’s 9-month net profit stays at P11.4B

By: Doris C. Dumlao - 9 years ago

MANILA, Philippines—The tycoon Andrew Tan-led Alliance Global Group Inc. posted a nine-month net profit of P11.4 billion, flat from the level in 2013, as the group pared down interest in the beverage and gaming businesses when these units went public.

Including minority interest, nine-month net income amounted to P17.2 billion, rising by 5 percent year-on-year on a recurring basis, AGI said in a regulatory filing on Thursday.

Andrew Tan. INQUIRER

Consolidated revenues amounted to P89.5 billion, down by 4 percent from the level reported in the same period last year.

“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,” AGI president Kingson Sian said in a press statement.

Sian said growth was driven by AGI’s subsidiaries – Megaworld Corp., Emperador Inc., Travellers International Hotel Group, Inc., and Golden Arches Development Corp. (GADC). However, 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.

Travellers International, which runs Resorts World Manila and eventually Bayshore City Resorts World, earned a net income of P4 billion in the first nine months, growing by 12 year-on-year.

GADC, which holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand, booked 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. No comparative level was given.

Moving forward, AGI’s avowed 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; Emperador given growth opportunities in the offing following the acquisition of a Scotch whisky company; Travellers’ ongoing expansion of Resorts World Manila that will potentially double gaming capacity by 2017; GADC with the plan to expand the number of McDonald’s branches to 500 by end of next year.”