Alliance Global income up 20% to P1.65 billion in first quarter

MANILA, Philippines - Alliance Global Group Inc. (AGI), the listed holding firm of businessman Andrew Tan, reported a 20 percent growth in consolidated net income in the first quarter this year to P1.65 billion from P1.37 billion.

In a financial report submitted to the Philippine Stock Exchange, AGI said total revenues rose 19 percent from P8.86 billion to P10.50 billion. Property arm Megaworld Corp. accounted for 46 percent of total revenues compared to 43 percent from the consumer business, primarily through Emperador Distillers and Golden Arches Development Corp.

Emperador Distillers produces leading brandy labels Emperador and Generoso and, more recently, The Bar flavored alcoholic beverages while GADC is the master franchise holder of McDonald’s in the Philippines.

Earnings before interest, taxes, depreciation and amortization increased by 17.86 percent to P3.3 billion from P2.8 billion a year ago.

“Our first quarter results show AGI’s continued strength in the industries it operates in. We believe that we are reaping the benefits of the business decisions we made in the last couple of years,” said Kingson Sian, president of AGI.

In 2008, AGI, through Travellers International Hotel Group Inc. (a joint venture with Genting Hong Kong Ltd.), is building the country’s first 24x7 integrated tourism estate in Newport City called Resorts World Manila, across from Terminal 3 of the Ninoy Aquino International Airport, and Resorts World Bayshore City, to be located within the 90-hectare Bagong Nayong Pilipino Entertainment City Manila.

Genting Hong Kong is a member of the Malaysian conglomerate Genting Berhad, and is the world’s third largest cruise line operator.

Through Travellers International, AGI will invest 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 1,300 rooms.

“While this is the first full quarter that we are reporting our share in the net profits in Resorts World Manila and, given that the facility is not yet fully complete, we are quite pleased by the early indication of the potential of the business. Nonetheless, we remain committed to building a truly world-class facility, one that can be considered a hallmark in Philippine tourism,” Sian pointed out.

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, when completed by 2011, will generate more than 10,000 direct and indirect jobs.