Alliance Global Group Inc., the conglomerate led by tycoon Andrew Tan, reported a three percent increase in first-half net income to ₱16 billion, supported by compounding property recurring revenues, expanding spirits margins, and a pivot toward non-VIP gaming.

In a disclosure to the Philippine Stock Exchange, the conglomerate said net profit rose from ₱15.6 billion recorded in the same period a year earlier, stripped of one-time gains linked to the 2025 deconsolidation of McDonald's master franchisee Golden Arches Development Corp.

Consolidated revenue, excluding the impact of the deconsolidation, grew three percent year-on-year to nearly ₱90 billion.

The results highlight a strategic shift across the group's business portfolio toward durable, higher-margin income sources as global market conditions remain demanding.

“In a demanding global environment, the strength of this Group is its mix,” Kevin L. Tan, president and chief executive officer of Alliance Global, said in the statement. 
“Our recurring property income kept compounding, our gaming business grew earnings even as the industry moved away from VIP play, and our spirits continued to grow on a stronger portfolio,” he added.

Travellers International Hotel Group Inc., the leisure arm that operates Newport World Resorts, delivered the conglomerate’s most improved performance during the six-month period.

Attributable net income nearly doubled to ₱568 million, while earnings before interest, taxes, depreciation, and amortization rose 13 percent to ₱4.4 billion. Net revenue reached ₱15.2 billion as strength in mass gaming and non-gaming offerings offset softer high-roller VIP volumes.

Non-gaming revenue surged 12 percent to ₱3.9 billion on higher room rates and food and beverage sales, while non-VIP gross gaming revenue climbed six percent to ₱9.6 billion, aided by expanding digital channels.

Real estate unit Megaworld Corp. generated ₱12.7 billion in net income, up five percent from a year earlier, on consolidated revenue of ₱44.2 billion. Hotel operations led segment growth with an 11 percent increase in revenue to ₱3.1 billion, boosted by new properties such as the Belmont Hotel Iloilo. Mall leasing revenue grew eight percent to ₱3.6 billion with portfolio occupancy holding at 95 percent, while office rentals rose five percent to ₱7.8 billion. Residential pre-sales expanded 15 percent to ₱63 billion, driven by demand across provincial township developments.

Spirits producer Emperador Inc. increased consolidated revenue by five percent to ₱29.6 billion. Brandy sales climbed four percent to ₱19.2 billion, with segment gross profit surging 20 percent on improved product mix and pricing. Whisky revenue rose seven percent to ₱10.4 billion as single malt demand expanded across international markets. Net income reached ₱3.7 billion, largely flat compared with the prior-year period, reflecting sustained marketing investments behind its global brands.

Tan said the conglomerate enters the second half of the year with positive momentum across its key units and a balance sheet built to fund ongoing expansion plans. (James A. Loyola)