Andrew Tan’s holding firm posts 10.6% jump in Q1 profit

MANILA, Philippines – Alliance Global Group Inc., the holding firm of billionaire Andrew Tan, posted higher first-quarter earnings as the strong performance of its property, food and liquor businesses offset the revenue decline seen by its gaming unit.

In a disclosure to the Philippine Stock Exchange on Tuesday, May 20, Alliance Global reported that its net income in January to March jumped 10.6% to P3.94 billion from P3.56 billion in the same period last year.

It said net income grew as consolidated revenues went up 3.2% to P31.23 billion versus P30.26 billion a year ago.

Buoying revenues was the 19% growth in sales of goods, including consumer goods and real estate. Revenues from services fell 9% due to the 23% decline in gaming revenues.

The conglomerate said it would continue to adopt prudent measures to enhance financial sustainability and look for opportunities to grow its bottom line.

“All the business segments are expected to grow revenues and profits in line with targets,” Alliance Global said.

For the first 3 months, property unit Megaworld Corporation posted a net income of P2.69 billion, up 49% year on year, thanks to robust residential sales in its townships.

Liquor firm Emperador Inc. also ended the first quarter with a profit growth of 19% to P1.72 billion.

Gaming unit Travellers International Hotel Group
Inc. posted a net profit of P1.72 billion, up 73% from what it reported last year. The company managed to record strong earnings despite lower revenues. It said the volume of VIP players from overseas was low because of the “difference in international calendar of activities.”

On the other hand, Golden Arches Development Corporation, the local franchise holder of fast food giant McDonalds, posted a 26% decline in first quarter net income to P171 million from P234 million on higher cost of raw materials.

As of end-March, Alliance Global had consolidated total assets of P336.4 billion, slightly higher from P332 billion at beginning of year. – Rappler.com

Shares up image from Shutterstock