ANDREW L. TAN-LED conglomerate Alliance Global Group Inc. (AGI) posted a 25% rise in second-quarter (Q2) attributable profit to P5.3 billion on a normalized basis, driven by its real estate and tourism segments.
April-to-June consolidated revenue stood at P45.3 billion on a normalized basis, slightly higher than the P45.08 billion recorded in the same period last year, AGI said in a regulatory filing on Thursday.
For the first half, AGI said its net income grew by 39% to P19.2 billion as revenue reached P100.9 billion.
AGI booked a one-time gain of P3.4 billion after reclassifying McDonald’s Philippines operator Golden Arches Development Corp. (GADC) from a consolidated subsidiary to an associate in its financial statements. The conglomerate holds a 49% stake in GADC.
Excluding such one-offs and netting out all GADC items in the financials, AGI said its attributable net profit grew by 23% to P10.1 billion while consolidated revenue went up by 3% to P87.1 billion.
“AGI delivered strong results in the first half of the year, benefitting from a buoyant domestic economy despite ongoing global uncertainty,” AGI President and Chief Executive Officer Kevin L. Tan said.
“Our strong performance was also accompanied by ongoing cost-efficiency measures, which we implemented across all our business segments. By managing our costs, we hope to enhance our operating leverage to ensure a more robust growth in profit as the economy further recovers,” he added.
On the property business, Megaworld Corp. saw a 25% increase in attributable net income to P10.7 billion as revenue climbed by 10% to P43.1 billion.
Real estate sales grew by 9% to P27.1 billion amid the rise in residential demand and steady project completion. Sales reservation reached P54.7 billion while project launches stood at P10.4 billion.
The office segment through Megaworld Premier Offices saw a 17% increase in office rental income to P7.4 billion due to new leases, capacity additions, and a stable occupancy rate of 87%.
The malls business led by Megaworld Lifestyle Malls contributed P3.3 billion to group revenue, up by 10%, on improving foot traffic, new tenants, and a 93% occupancy rate. Megaworld Hotels & Resorts, accounted P2.8 billion in revenue, reflecting a 19% improvement.
“During this period, our group took advantage of pockets of opportunities in the market to boost our residential and retail sales, as well as our office take-up,” Mr. Tan said.
The liquor manufacturing segment led by Emperador Inc. recorded P3.9 billion in attributable net income and P28.2 billion in consolidated revenue, driven by improved domestic brandy sales, stronger whisky sales, and wider overseas sales.
“Our spirits segment sustained its recovery in sales, a testament to the strength of its brands that have been expanding their presence in the local and international markets,” Mr. Tan said.
On the leisure and tourism segment, Travellers International Hotel Group, Inc. grew its earnings before interest, taxes, depreciation, and amortization by 11% to P4.5 billion. Its attributable income stood at P315 million while gross revenues reached P18.9 billion.
Gross revenue stood at P9.2 billion, as gross gaming revenues reached P7.5 billion, led by steady growth in mass business.
Non-gaming revenue reached P1.7 billion amid 90% hotel occupancy as the Newport World Resorts complex continued to enjoy healthy foot traffic.
“Our tourism and leisure segments also enjoyed increased activities and occupancy, tapping into the increasing demand for staycations and meetings, incentives, conferences, and exhibitions events,” Mr. Tan said.
AGI shares were unchanged at P7.50 apiece on Thursday. — Revin Mikhael D. Ochave