Alliance Global cuts earnings to P4.1 billion in H1

MANILA, Philippines — Alliance Global Group Inc. (AGI), the holding company of tycoon Andrew Tan, saw a 67 percent decline in its first half income to P4.1 billion, largely due to the negative impact of the coronavirus disease 2019 or COVID-19 pandemic.

Consolidated revenue fell 26 percent to P61.4 billion as the conglomerate faced pandemic-related challenges.

AGI’s interests span real estate developments through property giant Megaworld Corp., leisure, entertainment and hospitality through Travellers International Hotel Group Inc., spirits manufacturing through Emperador Inc., quick service restaurants through Golden Arches Development Corp. (GADC) and infrastructure developments through Infracorp Development Corp.

AGI chief executive officer Kevin Tan said the two-month lockdown affected most of AGI’s businesses.

“The country’s strict two-month lockdown weighed heavily on most of our domestic operations. We take comfort from the fact that we have managed to diversify our sources of income, either by type of products or by geographic contribution, and this has helped us mitigate the impact of this pandemic on our group performance,” Tan said.

Megaworld posted a 33 percent decline in attributable net income to P5.4 billion as consolidated revenues fell 25 percent year-on-year to P23.8 billion.

The strict community quarantine weighed on mall rentals, real estate sales, and hotel revenues.

However, office rentals grew 10 percent to P5.6 billion as the business catered mostly to the more resilient BPO industry.

Tan said the global health crisis has prompted the company to modify some of its practices.

“We have modified our product offerings and acquired new skills to adapt to the changes in consumer behavior. Likewise, our move to transform our operations under a digital strategy, an undertaking we have started only last year, has supported most of our businesses especially during the strictest period of the community quarantine,” Tan said.