Alliance Global profit pierces P20-B mark

MANILA, Philippines - Alliance Global Group Inc. (AGI) of tycoon Andrew L. Tan said its earnings pierced through the P20-billion mark last year, driven by its property and consumer-related businesses.

Strong macroeconomic conditions will propel the investment holding company to around P25 billion in profits this year, its top executive said.

In a disclosure to the stock exchange, AGI reported a 41-percent surge in net earnings to P20.8 last year from P14.7 billion in 2011, marking the first time the conglomerate breached the P20-billion income level.

“It only highlights the underlying strength of our various businesses, from consumer and property to business process outsourcing (BPO) and tourism, all growth drivers of the Philippine economy,” Tan said.

“We expect our various businesses to fully capitalize on the strong and positive macro environment. A minimum growth of 20 percent in net profit is quite achievable this year,” he added.

For 2012, AGI’s core net income spiked 60 percent to P13.6 billion from P8.5 billion a year ago.

AGI said growth was driven by property firm Megaworld Corp., brandy maker Emperador Distillers Inc., and Resorts World Manila operator Travellers International Hotel Group Inc., which collectively contributed 90 percent to the conglomerate’s earnings.

Profits of Megaworld climbed 21 percent to P7.3 billion as the property group recorded more than P63 billion in reservation sales involving 12,000 residential units.

“We are optimistic about the property sector, and we expect sustained growth momentum in our two main business segments, which are residential and BPO office developments,” said Tan.

Megaworld earlier announced plans to double its rental income to P10 billion over the next five years.

Emperador, for its part, more than doubled its income to P5 billion from P2.3 billion in 2011 as brandy sales hit 31 million cases.

Travellers, a joint venture with global cruise line operator Genting Hong Kong Ltd., booked P6.73 billion in earnings, up 39 percent from P4.84 billion in 2011. Net profit rose to P3.12 billion from P2.21 billion a year ago.

In the second quarter, AGI will start development of the third phase of Resorts World Manila, which is comprised of two new hotels (Sheraton and Hilton International) as well as the expansion of the existing Maxims and Marriott Hotels. 

“Travellers is at the forefront of building new tourism destinations in line with our government’s efforts to boost tourist arrivals,” Tan said.

AGI said its other subsidiaries, Global Estate Resorts Inc. and Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines, also posted strong earnings last year.