Alliance Global income up 23% to P4.8 billion in 2009

MANILA, Philippines - Alliance Global Group Inc., (AGI), the listed investment holding company of tycoon Andrew Tan, reported a net income of P4.8 billion last year, up 23 percent from P3.9 billion in 2008, as most of its business units continued to post steady gains.

In a financial report submitted to the Philippine Stock Exchange, AGI said consolidated revenues rose eight percent to P38.8 billion, of which 46 percent came from its real estate development business and 41 percent from the consumer business.

AGI has interests in the consumer segment through Emperador Distillers Inc., which produces brandy labels Emperador and Generoso and the newly introduced The Bar flavored alcoholic beverage, and Golden Arches Development Corp., the master franchise holder of fastfood giant McDonald’s in the Philippines.

Revenues from property unit Megaworld Corp. amounted to P17.8 billion, three percent higher than the previous year’s P17.3 billion.

Emperador and GADC, on the other hand, registered revenues of P15.2 billion or an increase of eight percent year-on-year from P14.1 billion.

“Alliance Global made good progress last year amid challenging market conditions. Our brands are stronger, driven by our commitment to deliver quality products and services that best meet the needs of our customers. We have further strengthened our leading positions in the industries we are in and entered into exciting new areas of growth such as the tourism sector,” said Kingson Sian, president of AGI.

“While we expect that the markets will become more competitive this year, especially in the real estate segment, the same commitment has provided us with the ability to act faster and become more agile in spotting new business opportunities and adapting to market changes. We believe that the results of our business decisions will be the main driver of long-term value creation that will benefit our shareholders,” he added.

Despite a tough business landscape, AGI continued to expand its businesses in 2009, highlighted by the opening of Resorts World Manila, the Philippines’ first 24/7 integrated tourism resort located within Megaworld’s Newport City development, across Terminal 3 of the Ninoy Aquino International Airport.

In 2008, AGI, through Travellers International, entered into a joint venture with Star Cruises Ltd., now Genting Hong Kong Ltd., to build Resorts World Manila in Newport City and Resorts World Bayshore City within the 90-hectare Bagong Nayong Pilipino Entertainment City Manila.

Travellers International has committed to invest at least $1.1 billion in developing the two Resorts World projects over the next five years.

AGI’s joint venture partner, Genting Hong Kong, is the world’s third largest cruise line operator and a member of the Malaysian conglomerate Genting Bhd.

Travellers International has earmarked over $500 million to develop Resorts World Manila, which includes the 172 all-suite Maxims Hotel, the 342-room five-star Marriott Hotel and a budget hotel called Remington. The three hotels will have a total of about 1,500 rooms.

Resorts World Manila also features a grand mall with a sky roof-covered piazza, world-class theater, gaming facility and other retail, leisure and entertainment facilities. The entire project, once completed by 2011, will generate more than 10,000 direct and indirect jobs.

Travellers International is also poised to begin development of a larger integrated tourism estate called Resort World Bayshore City, which shall make available about 2,500 hotel rooms. Given its scale, Resorts World Bayshore City is expected to create over 100,000 direct and indirect jobs.