Alliance Global profit up 13% to P23.1B

MANILA, Philippines - Investment firm Alliance Global Group Inc. (AGI) recorded another banner year in 2013, posting double-digit growth in earnings and revenues driven by the real estate and liquor businesses.

Ongoing expansion projects will allow the holding firm of property tycoon Andrew L. Tan to further improve its performance in the long term, the company said in a disclosure.

Net income of AGI rose almost 13 percent to P23.1 billion last year from P20.5 billion a year ago while consolidated revenues picked up 21 percent to P123.4 billion from P102.1 billion.

“We are elated that the group continues to show robust financial performance. We believe that all the ongoing expansion happening at the major subsidiaries of AGI will provide the impetus for sustained growth in the long run,” said AGI president and chief operating officer Kingson U. Sian.

Net income attributable to AGI shareholders climbed by nearly a quarter to P17.2 billion from P13.9 billion in 2012.

Specifically, attributable earnings from Emperador Inc. hit P5.3 billion, followed by Megaworld Corp. at P5.3 billion, Travellers International Hotel Group Inc. at P1.2 billion, Golden Arches Development Corp. at P387 million and Global-Estate Resorts Inc. (GERI) at P224 million.

Emperador, through its wholly-owned subsidiary Emperador Distillers Inc., sold 33 million cases of products, mostly brandy, last year, up by two million cases from 2012.

AGI said Emperador recorded higher sales despite the increase in liquor tax at the start of 2013.

“Megaworld’s performance was underpinned by stronger residential sales and higher leasing income from its office and retail portfolio,” AGI said.

Megaworld Group, which also includes medium-cost housing arm Empire East Land Holdings Inc. and affordable housing unit Suntrust Properties Inc., launched 18 projects last year.

For its part, Resorts World Manila owner and operator Travellers Group recorded higher revenues on the back of higher gaming volume and higher hotel occupancy rates.

Travellers Group, a joint venture of the world’s third-largest cruise line operator Genting Hong Kong and AGI, is spending around $600 million as it pursues Phase 2 and 3 of Resorts World Manila.

McDonald’s master franchise holder Golden Arches attributed its growth to the opening of 37 new branches, renovation of existing restaurants and introduction of a new product.

Tourism estate developer GERI said real estate sales and hotel operations were driven by the projects in Boracay and Tagaytay.

Total assets of AGI jumped 22 percent to P332.4 billion as of end-2013 from P272.2 billion a year ago.