Alliance Global profit grows 17%

AUGUST 11, 2018

ANDREW TAN-led conglomerate Alliance Global Group, Inc. (AGI) reported a 17-percent increase in attributable net income in the first half of the year on strong growth among all units.

AGI told the Philippine Stock Exchange on Friday that net income attributable to owners expanded to P7.9 billion from P6.9 billion in the same period last year.

Consolidated net profit grew 23 percent to P12.4 billion from P10.2 billion previously.

Consolidated revenues increased 9 percent to P73.2 billion versus the P66.8 billion reported in the comparable period last year.

"All of the group’s major subsidiaries delivered strong topline and bottom line results, reflecting the improving outlook in their respective business segments," AGI Chief Executive Officer Kevin Tan said.

"We have consistently grown our reliable sources of income and have improved our operating leverage. All of these should support us as we navigate the challenging economic environment moving forward," he added.

Township arm Megaworld Corp. on a stand-alone basis, saw its attributable net income increase 13 percent to P7.3 billion from P6.4 billion on the back of consistent growth in rental and residential businesses, which boosted its combined revenues by 10 percent to P26.8 billion.

The residential segment continues to benefit from progressive project completion, pushing its realized gross profit up by 22 percent to P7.9 billion.

For its leasing portfolio, AGI said Megaworld’s rental income from both office buildings and lifestyle malls improved 17 percent to P6.8 billion and now accounts for 25 percent of total revenues.

Revenue from its hotel business grew 10 percent to P715 million from P648 million last year.

Brandy maker Emperador, Inc., for its part, reported an 18-percent hike in attributable net profit to P3.3 billion in the first half of the year from the P2.7 billion in the same period in 2017.

"Such strong performance was driven largely by the increasing contribution from its whisky operations which reported a robust 77 percent growth in net profit to P890 million accounting for 27 percent of total," the parent company said.

Whyte and Mackay’s single malt whisky brands The Dalmore and Jura continued to enjoy brisk sales in Asia and the United States, boosting whisky revenues by 16 percent to P6.2 billion.

Meanwhile, brandy revenues inched up 4 percent to P13.6 billion, bucking a "soft domestic market." Consolidated revenues increased 8 percent during the period to P19.5 billion.

Resorts World Manila operator Travellers International Hotel Group, Inc. saw net profit surge to P1.7 billion from P375 million a year earlier.

Despite steady volumes in the period, AGI said gaming revenues dipped 3 percent to P4.5 billion on slightly lower blended hold rate of 5.3 percent. The launch of a portion of the Grand Wing is expected to further buoy the premium gaming business at RWM.

Non-gaming revenues went up 4 percent to P2 billion, with average hotel occupancy rates at 80 percent. The completion of Phase 3 expansion is expected to result in an additional 940 hotel rooms, a high-end retail space and an expanded gaming capacity.

Food arm McDonald’s Philippines operator Golden Arches Development Corp. (GADC) grew its net income by 26 percent to P741 million driven by an 11-percent expansion in sales revenues to P13.5 billion.

As of end-June, GADC recorded a total of 585 McDonald’s stores nationwide from 566 stores in the same period last year.

AGI shares closed up 16 centavos at P12.58 apiece.

Read More : https://www.manilatimes.net/alliance-global-profit-grows-17/428905/

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