AGI reports P21.8-B net profit for 2017

Published April 5, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Andrew L. Tan, reported a dip in net income to P21.8 billion last year from the P22.8 billion earned in 2016 as it registered a mixed performance across its various business segments.

In a disclosure to the Philippine Stock Exchange, AGI said consolidated revenues went up slightly to P141.8 billion from P139.7 billion in 2016.

This is due to the strong results from its real estate operations and quick service restaurants business which cushioned the weakness in its gaming and leisure operations, as well as the modest rise in liquor sales.

Net income attributable to common shareholders reached P14.9 billion, little changed from its level a year ago. Adding back non-recurring items, net income should show some 4 percent improvement to P15.2 billion.

AGI President Kingson U. Sian said “2017 has been a rather challenging year for the Group but that never deterred us from pursuing our growth ambitions.”

He noted that, “as we move forward, we remain focused on investing in our future. We have in fact spent close to R70 billion during the year for our ongoing expansion plans.”

“For this year, we are allocating capex (capital expenditure) of P80 billion as we continue to invest for growth in order to future-proof our business,” said Sian.

About 75 percent of this amount will go to Megaworld, mainly for its development and investment property projects, which should allow it to sustain its healthy earnings growth moving forward.
“Another 15 percent of capex will be spent by Travellers to complete its Grand Wing (Phase 3), development which should boost its hotel and overall gaming capacity,” said Sian.

Megaworld, AGI’s property arm, sustained the growth in attributable net profit at its 13 annual clip to P12.8 billion in 2017 while Emperador, the world’s largest brandy company, posted a net income of P6.3 billion.

Travellers reported lower EBITDA of P3.5 billion as gross revenues fell to P21 billion in the aftermath of the unfortunate June 2 incident.