Alliance Global nears profit target

MANILA, Philippines - Alliance Global Group Inc. (AGI), the listed investment holding firm of tycoon Andrew Tan, said it is nearing its full-year income forecast this year of at least 35 percent growth from the P9.5 billion profit reported in 2010, according to a top company official.

In a briefing yesterday, AGI president Kingson Sian said the growth will be mainly driven by the robust performance across all businesses – flagship property firm Megaworld Corp., gaming and leisure firm Travellers International Hotel Group, hard liquor unit Emperador Distillers Inc. and Golden Arches Development Corp., (the Philippine franchise holder of global fastfood giant McDonalds.

Sian said Travellers International, a joint venture between AGI and Genting Hong Kong Ltd., is also maintaining its upbeat income target of around P6 billion or double that of the 2010 level.

Travellers International is the developer of Resorts World Manila, the first integrated casino resort in the country.

Sian said Megaworld is likewise seen to post earnings of P6 billion this year on brisk sales.

In the nine months ending September this year, AGI chalked in record earnings of P12.3 billion or 62.6 percent higher than the previous level.

Excluding the P3.2 billion acquisition gain, AGI’s net earnings grew 31 percent to P9.9 billion or an increase of 83.8 percent year-on-year.

Revenues during the nine-month period grew 52 percent to P49.2 billion largely due to a 51 percent rise in consumer products sales (P6.7 billion), 25 percent in real estate sales (P2.7 billion) and 71 percent in realized gross profit on prior years’ real estate sales (P772 million).