Alliance Global sustains profitability despite challenges


Alliance Global Group Inc. (AGI), the investment holding company of tycoon Andrew Tan, reported an almost flat net income of P20.05 billion during the first nine months of the year versus P20.14 billion in the same period of 2023.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues expanded by 7.4 percent to P161.6 billion from P150.4 billion during the same period last year. 

Attributable profit was slightly up at P12.97 billion in the first nine months of 2024 from the P12.93 billion earned in the same period last year.

During the third quarter of 2024, AGI’s net income grew to P6.22 billion from P5.96 billion in the same period last year as consolidated revenues grew to P54.1 billion from P51.3 billion. 

Attributable profit during the quarter stood at P4.2 billion, reflecting a 13.6 percent year-on-year (YoY) increase from P3.7 billion.

“AGI’s healthy topline performance in the first three quarters of the year was largely driven by significant increases in residential sales in the real estate business, coupled with rising contribution from its hospitality segment and quick-service restaurants,” said AGI President and CEO Kevin L. Tan. 

He added that, “The growth was achieved despite challenges brought about by generally elevated inflation and weaker global economy.”

Megaworld Corporation, the country’s premier township developer and the biggest contributor to Group performance, realized a 14 percent improvement in net income in the first nine months of the year to P13.7 billion from P12.0 billion the year before. 

Emperador, the biggest brandy company in the global market and amongst the fastest-growing Scotch whisky manufacturers in the world, saw its consolidated net profit drop 29 percent to P4.9 billion while revenue slipped eight percent to P43.2 billion. 

The Brandy segment was affected by the general weakness in demand in key markets like Spain, Mexico and the Philippines, while the Scotch Whisky segment was weighed down by the tough trading situation in China and in the US which impacted category sales in the Asia-Pacific and North American regions.

Travellers International, the Group’s leisure and tourism arm and owner/operator of Newport World Resorts, recorded total gross revenues of P29.7 billion in the first nine months of the year due to the rise in tourism and MICE activities.

Hotel and other revenues to grew by nine percent YoY to P5.4 billion while gross gaming revenues hit P24.3 billion amid increasing contribution from the mass segment while the significant expansion in VIP rolling volume cushioned the impact of lower hold rate.

Attributable net income dropped 56 percent to P497 million from P773 million in the nine-month period last year.

Golden Arches Development Corporation, the country’s most dynamic quick-service restaurant operator, posted total sales revenue of P34.6 billion in the first nine months of 2024, reflecting a 12 percent increase from P30.7 billion the year before, supported by its ongoing store expansion program, as well as its creative product offerings and pricing. 

However, increased inventory and personnel costs brought its attributable profit during the nine-month period to P1.23 billion from P1.47 billion last year.

The company, which holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand, has a long-term partnership with AGI and is led by its Chairman and Founder George Yang.

“Despite some macro headwinds and a highly competitive landscape, we continue to look at the last quarter of the year with renewed optimism. We believe the seasonal holiday spending, alongside a period of monetary easing, could provide significant opportunities to allow the Group to finish on a strong note,” said Tan.