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Manila Bulletin devider Business devider The Stock Market devider Andrew Tan's AGI cuts capital expenditures by 8% amid economic caution

Andrew Tan's AGI cuts capital expenditures by 8% amid economic caution

Published Apr 22, 2025 07:29 am

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Alliance Global Group Inc. (AGI), the investment holding company of tycoon Dr. Andrew Tan, is cutting capital expenditures (capex) for 2025 following a decline in earnings in 2024.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said it is allotting ₱63 billion for capex this year, eight-percent lower than the ₱68 billion earmarked last year.

AGI said it is looking at 2025 with cautious optimism amid economic challenges and intends to take advantage of opportunities in the domestic and global markets while pursuing cost-efficiency measures.

It noted that the group will continue to invest in capital expansion across the real estate, hospitality, quick-service restaurant, and spirits segments.

Megaworld Corp. is reducing spending to ₱50 billion in 2025 from ₱51 billion in 2024; Emperador Inc. will be allotted ₱4 billion, or half of the ₱8 billion in 2023; while Travellers International Hotel Group Inc. and Golden Arches Development Corp. (GADC) will maintain their allotments at ₱5 billion apiece.

Travellers is expanding its hospitality and gaming businesses in Boracay Newcoast, Westside City, and Mactan Newtown. It is also developing Narra Palm Hotel and Villa, which will have 157 hotel suites and villas, as well as five private casino gaming suites.

AGI reported a 12-percent decline in attributable net income to ₱17.2 billion last year from ₱19.6 billion in 2023, weighed down by the performance of Emperador.

The firm said consolidated revenues improved by six percent to ₱223.6 billion in 2024, from the ₱210.8 billion generated in 2023.

AGI said its strong topline performance was buoyed by the real estate, hospitality, and quick-service restaurant segments, although profitability was tempered by rising costs.

Megaworld posted a 17-percent growth in revenues to ₱81.3 billion as Emperador’s revenues dipped six percent to ₱61.3 billion. Revenues of Travellers inched up one percent to ₱31.7 billion, while GADC, or McDonald’s Philippines, grew revenues by 12 percent to ₱48.3 billion.

AGI said Megaworld remained the primary driver of revenue and earnings, bolstered by significant improvements across all segments.

Emperador faced global headwinds that affected international spirits, coupled with challenges in the domestic market, while elevated costs—particularly for advertising and promotions—squeezed margins.

Travellers benefited from strong growth in its non-gaming revenues and mass gross gaming revenues, while operating costs and expenses were generally contained.

GADC maintained solid sales growth driven by network expansion, but rising input costs and higher advertising and promotion expenses also compressed margins.

Related Tags

Travellers International Hotel Group Inc. Golden Arches Development Corporation (GADC) Andrew Tan Emperador Inc. Megaworld Corporation Alliance Global Group Inc.
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