Alliance Global Group, Inc. (AGI), the holding company of tycoon Andrew Tan, reported a 62 percent drop in net income to P10.3 billion last year compared to the P27.1 billion earned in 2019 as the pandemic hit most of its businesses.
In a disclosure to the Philippine Stock Exchange, AGI said consolidated revenues were down 28 percent to P129 billion from the previous year’s P180 billion, while net income to owners stood at P8.8 billion.
“However, double-digit recovery was achieved by its core businesses in the fourth quarter as the government eased quarantine restrictions toward the long holiday season,” the firm noted.
Liquor sales of Emperador grew 42 percent during the fourth quarter compared to the previous quarter; sales of McDonald’s Philippines also jumped 36 percent quarter-on-quarter; gaming revenues of Resorts World Manila also grew 33 percent; and real estate sales of Megaworld was up 22 percent in the last quarter compared to the third quarter.
“This pandemic really taught us so many lessons as a Group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio that could provide a balanced stream of earnings in a post-pandemic scenario,” said AGI Chief Executive Officer Kevin L. Tan.
Last year, two of AGI’s biggest companies – Emperador and Megaworld– benefitted strongly from such deliberate diversification strategies designed to solidify their revenue and earnings base.
During the strict lockdown last year, Emperador performed exceptionally in its global liquor operations, particularly for its brandy and whisky products while Megaworld was able to benefit from its strong and stable office leasing portfolio.
During the year, AGI also fully accelerated its digitalization strategy with investments in Agile Digital Ventures, a wholly-owned subsidiary of Megaworld.
“Innovation, especially on digital technology, will remain to be at the core of our various companies’ business operations. We will continue to use technology to give our Group an added advantage as we embrace the New Reality,” said Tan.
In 2020, Travellers International managed to post EBITDA of P425 million even with the limited operations of Resorts World Manila (RWM) during most part of the year due to the community restrictions.
Net gaming revenues in 2020 stood at P9.4 billion, while non-gaming revenues amounted to P2.8 billion.
Golden Arches Development Corporation, which holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand, registered sales of P19.8 billion in 2020.
The company managed to record EBITDA of P3.2 billion and EBIT amounted to P316 million. GADC closed the year with 655 McDonald’s stores.