AGI profit down 8%

Tycoon Andrew Tan-led Alliance Global Group Inc. reported P6.72 billion in first-semester net profit attributable to equity holders, down by 8 percent year-on-year on slower earnings contribution from its integrated gaming resort and liquor businesses.

Including earnings attributable to minority interest, AGI’s net profit in the first semester hit P10 billion versus P11.34 billion a year ago. Six-month revenue was flat at P66.8 billion.

Performance across AGI’s operating units was mixed. Property arm Megaworld Corp. and the quick service restaurant business under Golden Arches Development Corp. (GADC) delivered strong results while the liquor business under Emperador Inc. and gaming business under Travellers International Hotel Group lagged.

“We remain confident of our growth prospects, recognizing the various opportunities that continue to present themselves in the economy,” AGI president Kingson Sian said.

“As such, we are steadfast in our investment commitments across all our business segments, maintaining our capital expenditure budget of about P80 billion for the year,” Sian said.

Megaworld accounted for 64 percent of attributable net profit while Emperador accounted for 33 percent.  Travellers took up 3 percent while GADC had a 4-percent share.

GADC, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, grew its profit by 20 percent year-on-year to P595 million in the first semester as sales revenue expanded by 12 percent to P12.2 billion. Earnings growth was driven by system-wide same store-sales growth of 5 percent and ongoing store expansion program.

The fast-food chain ended the first half with 533 stores nationwide, up from 494 a year before.

Megaworld booked an 11-percent year-on-year increase in first semester net profit to P6.69 billion on the back of higher recurring earnings from its leasing portfolio.

Emperador saw a 20.6-percent drop in first semester profit to P2.7 billion due to a slowdown in revenue from the domestic liquor business.

Travellers also saw a 79-percent year-on-year decline in first semester net profit to P375 million.