Quezon City—(PHStocks)—Alliance Global Group Inc. (PSE: AGI) recorded a net income of PhP17.2 billion in the first nine months of this year, up 5% (on a recurring basis) from the same nine-month period last year. This was achieved on consolidated revenues of PhP89.5 billion.
“The group’s financial performance continues to be strong. We have a lot of confidence in our businesses, which are genuine game changers in their respective industries and our long-term growth is underpinned by a consumption-led economic growth and a young consumer market,” said Kingson U. Sian, president and chief operating officer.
Driven by AGI’s subsidiaries – Megaworld Corp. (PSE: MEG), Emperador Inc. (PSE: EMP), Travellers International Hotel Group Inc. (PSE: RWM), and Golden Arches Development Corp. (GADC) – net income attributable to AGI shareholders reached PhP11.4 billion during the first nine months of this year from PhP11.5 billion in the same nine-month period in 2013. The share of minority interests to consolidated net income rose to 33% this year from 30% last year. AGI had higher ownership in Emperador and Travellers International for the most part of 2013 and this was reduced when both subsidiaries went public in the latter part of the third quarter and in the fourth quarter of last year, respectively.
Megaworld this week reported a net income of PhP19.03 billion (inclusive of the PhP11.62-billion non-recurring gain from the acquisition and sale of a subsidiary and associate) during the first nine months of 2014, 192% higher year-on-year. This was due to strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City, as well as higher leasing income from its office and retail portfolio. Megaworld’s rental income, which is derived from offices and lifestyle malls, surged to a record PhP5.2 billion, a 20% jump year-on-year. Megaworld and its subsidiaries posted PhP70.2 billion in reservation sales, reflecting an 11% growth year-on-year.
Emperador Inc, which owns Philippines’ most dominant liquor company Emperador Distillers Inc. (EDI), earlier reported PhP4.6 billion in net income on the back of higher margins and greater volume in the third quarter, especially when compared to the second quarter of this year.
Travellers International, which runs Resorts World Manila and eventually Bayshore City Resorts World, earned a net income of PhP4 billion this year, reflecting a 12% growth from last year. GADC, which holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand, realized a net income of PhP406 million during the first nine months of 2014 on the back of a bigger network of 432 branches all over the country.
Moving forward, AGI’s strategy is to constantly remain focused on its core competence. Sian added, “We have always been very passionate about our businesses and we are very excited about the future prospects of Megaworld, given its unparalleled dominance in township development; Emperador given growth opportunities in the offing following the acquisition of a Scotch whisky company; Travellers’ ongoing expansion of Resorts World Manila that will potentially double gaming capacity by 2017; GADC with the plan to expand the number of McDonald’s branches to 500 by end of next year.”