earnings reports

Andrew Tan empire to refocus priorities as pandemic shakes businesses

Ralf Rivas

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Andrew Tan empire to refocus priorities as pandemic shakes businesses

AGI. Alliance Global Group chairman Andrew Tan and chief executive officer Kevin Tan.

Photo from Megaworld Corporation

'This pandemic really taught us so many lessons as a group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio,' says Alliance Global CEO Kevin Tan

Andrew Tan-led Alliance Global Group (AGI) is looking at shifting priorities post-pandemic, after suffering a huge drop in earnings in 2020.

AGI saw a 62% income drop to P10.3 billion in 2020 compared to the P27 billion recorded in 2019.

Consolidated revenues fell 28% to P129 billion from P180 billion.

AGI noted it saw double-digit recovery in its core businesses during the 4th quarter, as the government eased quarantine restrictions.

The conglomerate said it is shifting the market focus of its various companies to achieve a “more balanced portfolio.”

It added that it is preparing for post-pandemic scenarios, such as a potential shift in market demands, as well as changes in customer lifestyles and behaviors.

“This pandemic really taught us so many lessons as a group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio that could provide a balanced stream of earnings in a post-pandemic scenario,” said Kevin Tan, chief executive officer of AGI.

Here is a snapshot of how AGI’s businesses performed in 2020:

Megaworld

Megaworld Corporation saw a 45% drop in its earnings to P10.6 billion, while revenues decreased by 35% to P43.5 billion.

The real estate developer’s office segment somewhat cushioned the blow, but was not enough to pull up income, as malls bled cash in 2020 due to quarantine restrictions.

Emperador

Emperador saw an improvement of 18% in its profits of P8 billion in 2020, while revenues slightly went up by 2% to P52.8 billion, as the pandemic drove liquor sales.

It also noted strong performance in global liquor operations, particularly in Europe, Asia, North America, Latin America, and Africa.

Travellers International

Travellers International earned P425 million before taxes and interest, despite limited operations of Resorts World Manila.

Gaming revenues stood at P9.4 billion, while non-gaming revenues amounted to P2.8 billion.

McDonald’s

Golden Arches Development Corporation, popularly known as McDonald’s Philippines, registered sales of P19.8 billion amid the pandemic.

Earnings before taxes amounted to P3.2 billion. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.