MANILA, Philippines - Alliance Global Group Inc. (AGI), the investment holding firm of property magnate Andrew Tan, said its first half core net earnings grew 22 percent to P5.73 billion.
Consolidated revenues went up 69 percent to P51.07 billion, mainly driven by the consolidation of Travellers International Hotel Group Inc. into its books.
Main property unit Megaworld Corp. contributed around 42 percent to AGI’s total net income and about 30 percent to total revenues.
Megaworld, however, reported a 30 percent decrease in first semester profit to P3.59 billion, hurt by higher costs and expenses. Revenues were flat at P15.4 billion as cost and expenses rose 10.85 percent to P11.74 billion.
Core earnings, however, rose 15 percent to P3.69 billion.
Rental income from Megaworld’s BPO office and retail developments increased 38.65 percent to P2.26 billion. Revenues from hotel operations likewise improved 26 percent to P222.33 million.
Apart from real estate, AGI has interests in industries such as food and beverage, quick -service restaurants and integrated tourism estates.
Food and beverage arm Emperador Distillers Inc. produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.
“We expect Emperador to contribute significantly to our group’s earnings this year,” said AGI chief financial officer Dina Inting.
The group’s food business, on the other hand, is under Golden Arches Development Corp., which operates the fast food business under the McDonald’s brand. GADC is a joint venture with the Yang family.
Subsidiary Travellers International, along with its partner Genting Hong Kong, operates Resorts World Manila, the first integrated tourism estate in the country. Resorts World Manila is located in Newport City, set across from Terminal 3 of the Ninoy Aquino International Airport in Pasay City.
Another unit, Global-Estate Resorts Inc. develops integrated tourism estates in strategically located tourism hot spots such as Boracay, Tagaytay and Batangas.