AGI income flat on weak brandy, leisure businesses

Lower gains from the brandy and leisure businesses tempered growth in Alliance Global Group Inc.’s (AGI) nine-month net profit, which ended flat at P13 billion.

In a stock exchange filing on Friday, the company led by billionaire Andrew Tan said its top line inched up by 7.4 percent to P161.55 billion.

AGI president and CEO Kevin Tan said developer Megaworld Corp. was the main revenue growth driver after it posted a 14-percent improvement in earnings to P13.7 billion in the January to September period.

READ: Alliance Global rides local tourism boom

“The growth was achieved despite challenges brought about by generally elevated inflation and weaker global economy,” Tan said in a statement.

Megaworld’s revenue surged by 23 percent to P59.8 billion on stronger real estate sales and an improvement in the hotel and mall operations.

Residential revenues, which account for 68 percent of the total, jumped by 30 percent to P37.8 billion.

The mall segment grew to P4.5 billion, up by 16 percent, on the back of high foot traffic and occupancy rates.

Megaworld Hotels and Resorts likewise expanded by 38 percent to P3.6 billion due to increased tourism activities.

Brandy unit Emperador Inc.’s net income slid by 27.26 percent to P4.3 billion on shifting consumer behavior and weak demand in the Philippines, Spain and Mexico.

Sales in Latin America, the Middle East and Africa remained stable, AGI said.

Gaming profits shrink

Leisure and tourism arm Travellers International Hotel Group Inc., the owner and operator of Newport World Resorts, saw its profits shrink by 69.1 percent to P155 million due to lower gaming revenues.

Lower win rates dragged gaming revenues by 5 percent to P17.5 billion.

Despite this, AGI earlier confirmed plans to develop a $400-million entertainment complex in Cebu province and another $300-million casino resort on Boracay Island, banking on the country’s booming tourism to help lift profits.

According to Tan, the Cebu development will stand within AGI’s 30-hectare Mactan Newtown township in Lapu-Lapu City.

It is slated for completion in 2026 and will feature a two-floor gaming area, food-and-beverage outlet stores, villas and a beachfront.

The Boracay “boutique resort,” meanwhile, will complete an entertainment complex in the country’s most popular beach destination.