Alliance Global core profit up 34% in 1st quarter

Alliance Global Group Inc. (AGI) grew its first-quarter core net income attributable to parent equity holders by 34 percent to P2.96 billion—up 34 percent from the P2.21 billion reported in the same period last year.

Including minority interest, AGI’s core net profit in the first quarter rose to P4.15 billion from P2.85 billion a year ago.

Also, its three-month revenue jumped to P24.35 billion, from P13.67 billion, with the consolidation of integrated entertainment estate developer Travellers International Hotel Group Inc. this year.

“Our first-quarter results reflect continued solid performance, with revenue up 78 percent, and core net income up 46 percent this year. We expect that the strong growth of our Emperador business will contribute significantly to our group’s earnings,” said AGI president Kingson Sian.

The growth of tycoon Andrew Tan’s company was led by real estate arm Megaworld Corp., which accounted for around 28 percent of the group’s total revenue. Megaworld booked a net profit of P1.58 billion in the first quarter—up 27 percent from the previous year.

The performance of Megaworld was backed by strong sales from its residential projects in Newport City, McKinley West, McKinley Hill and Eastwood City, as well as strong leasing income from its business process outsourcing-oriented office and retail portfolio.

Revenues and profits from the rest of AGI’s portfolio of businesses also grew in line with targets. Apart from real estate, AGI has interests in industries such as food and beverage, quick service restaurants and integrated tourism estates.

AGI’s total cash and cash resources at the end of the period amounted to P63.8 billion.