Manila—(PHStocks)—Alliance Global Group Inc. (PSE: AGI) registered a net income of PhP5.4‐billion in the first quarter of 2017, up 2% from last year’s PhP5.3‐billion. The investment holding company of billionaire Dr. Andrew Tan attributed its improved performance to ongoing efforts in building more sustainable and higher margin businesses across its major subsidiaries.
AGI’s consolidated revenues went up by 2% year‐on‐year to PhP33.7‐billion. Meanwhile, its net income to owners stood at PhP3.6 billion, reflecting a 7% increase from last year’s PhP3.3 billion.
“The various businesses within our Group continue to evolve to ensure a more stable business platform that is capable of capturing the country’s economic growth waves,” says Kingson U. Sian, president, AGI.
“Backed by our previous and ongoing strategic investments, AGI now enters a new phase of development, with all of its subsidiaries better positioned to post quality earnings, and capable of sustaining their momentum over a long cycle,” Sian adds.
Megaworld Corp. (PSE: MEG), the country’s largest developer of integrated urban townships, reported first quarter net income of PhP2.9 billion, up 11% year‐on‐year. Consolidated revenues grew 5% to PhP12‐billion, boosted by a robust 26% increase in rental income to PhP2.9 billion, a sharp 23% growth in hotel revenues to PhP333 million, and a 2% rise in residential revenues to PhP8.3 billion. The company’s office, commercial and hotel properties now account for a combined 27% share of total revenues from 22% the year before, enhancing its operating margins to 35.5% versus last year’s 34%.
Emperador Inc. (PSE: EMP), on the other hand, chalked up a 7% increase in first quarter profit to PhP1.5 billion on steady revenues of PhP9 billion. The company’s performance benefited from continued cost efficiencies from its fully integrated operations, thereby bringing its gross profit margins higher to 34% (from 32% a year before) and operating margins to 22% (from 20%).
During the quarter, Emperador’s Bodegas Las Copas SL completed the acquisition from Pernod Ricard of the Domecq and Pedro Domecq brands, including the brandy, spirit and wine business linked to those brands around the world, for €80.9 million (approximately PhP4.4 billion). The move reinforces Emperador’s position as the largest brandy company in the world.
Travellers International Hotel Group Inc. (PSE: RWM), owner and operator of Resorts World Manila (RWM), posted steady EBITDA of P1.4‐billion on gross revenues of PhP6.3‐billion. Gross gaming revenues stood at PhP5.3‐billion, supported by the 10% growth in non‐VIP revenues to P4‐billion, benefitting from higher volumes and win rate.
Non‐gaming revenues contributed PhP1.1 billion, up 9% year‐on‐year, partly due to increasing contribution from the Marriott Grand Ballroom, which is now considered to be the preferred venue for Meetings, Incentives, Conferences and Exhibitions/Events (MICE).
RWM’s hotel operations also gained from increased room capacity to 1,454, with the additional hotel rooms coming from the Marriott West Wing, and higher average occupancy rate of 86% for the same period from 85% the year before.
Golden Arches Development Corp, which holds the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand, has sustained its strong growth trajectory with sales revenues expanding by 13% year‐on‐year to PhP5.9 billion and net income growing at a robust 42% clip to PhP271 million.
Top‐line growth was driven largely by the 5% improvement in system-wide same‐store sales, new store additions and operating leverage. The company ended the first quarter 2017 with a total of 526 stores throughout the country, compared with 484 stores in 2016.