Alliance Global earns 5% more in 2016

MANILA, Philippines - The holding company of tycoon Andrew Tan saw a modest rise in its profits in 2016 on strong contributions across all business units.

Alliance Global Group Inc. (AGI) yesterday said it recorded a net income of P22. 8 billion last year, up five percent year-on-year.

 AGI said its 2016 performance was buoyed by the continued improvement in operating efficiencies across all companies even as consolidated revenues stood flat at P139.7 billion.

Net income attributable to common shareholders reached P14.8 billion, six percent higher than the previous year.

“Since about three-to-four years ago, the group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” AGI president Kingson Sian said.

 Property unit Megaworld posted a 12 percent year-on-year growth in core net income to P11.6 billion while consolidated revenues rose four percent to P46.8 billion, driven mainly by its leasing operations which recorded a 15 percent increase in revenues to P10 billion.

AGI said 60 percent of Megaworld rentals were contributed by its office segment which ended the year with 851,000 square meters in gross leasable area, reaffirming its position as the largest office developer and lessor in the country.

Megaworld has 22 mixed-use developments all over the Philippines, spanning about 3,700 hectares.  It has also expanded its office and commercial leasing businesses which now contributes to about half of its operating profits.

Emperador, the world’s largest brandy company, recorded an 11 percent improvement in net income to P7.7 billion on revenues of P41 billion.