Alliance Global posts P2.2-B profit as lockdown measures ease

ALLIANCE GLOBAL Group, Inc. (AGI) on Friday reported an attributable net profit of P2.03 billion in the third quarter as the looser quarantine measures and gradual reopening of the economy brought improved quarterly results for the Andrew L. Tan-led holding firm.

Although lower than the P4.73-billion attributable income in the same period a year ago, this year’s third-quarter profit was higher than the second quarter’s P837.71 million, the company’s quarterly report to the stock exchange showed.

AGI Chief Executive Officer Kevin L. Tan said the company is motivated by the improvements posted by its business units during the third quarter.

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“Our interim performance also validated the soundness of our diversification strategy as evidenced by the strong results delivered by our international liquor operations even amidst the global pandemic,” Mr. Tan said.

For the nine-month period, AGI’s net income fell 54.6% year-on-year to P5.83 billion against P12.83 billion in 2019.

AGI’s property unit, Megaworld Corp., posted a net profit of P2 billion. Its rental income rose 10% to P10.6 billion versus the previous quarter due to the strong performance of its office rentals business.

For the nine-month period, Megaworld’s net profit fell 42% to P7.4 billion while consolidated revenues declined 31% to P33.3 billion.

Meanwhile, Emperador, Inc., the company’s liquor unit, posted a net income of P2.5 billion for the third quarter, while its total revenues amounted to P12.9 billion.

From January to September, Emperador’s net profit rose 11% to P5.9 billion while its consolidated revenues improved 2% to P34.5 billion.

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Travellers International Hotel Group Inc., the owner and operator of Resorts World Manila, posted an attributable net loss of P1.7 billion despite posting total gross revenues of P3.7 billion during the quarter.

For the first nine months of the year, Travellers posted a net loss of P5.4 billion compared with a net income of P786 million a year ago.

“Total gross revenues reached P11.5-billion, down 55% year on year, as gross gaming revenues fell by the same token to P9.3 billion, while non-gaming revenues plunged by 53% to P2.2 billion, weighed down by limited hotel and meetings, incentives, conferencing, and exhibitions (MICE) activities,” the disclosure said.

Golden Arches Development Corp. (GADC), also known as McDonald’s Philippines, trimmed its net losses in the third quarter to P257 million, as its sales revenues reached P4.5 billion due to more stores resuming operations.

For a nine-month period, GADC posted a net loss of P967 million, against a P1.2 billion net income in the previous year.

“Sales revenues fell 39% year on year to P14.2 billion as system wide sales hit P24.2 billion due to the heavy impact of the lockdown in the second quarter. GADC ended the period with 658 stores as compared to 669 stores at the start of the year,” the disclosure said.

AGI’s Mr. Tan said the company remains optimistic that it can maintain its improvement across business units, adding that he expects the economy to improve moving forward.

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“Meanwhile, we continue to help rebuild consumer confidence by assuring our stakeholders of the safe live, work and play environment in our townships,” Mr. Tan said.

“We have maintained our cost discipline and continue to observe financial prudence to support our operations amid this disruption. At the same time, we remain agile to identify and take advantage of opportunities in this rapidly changing environment,” he added.

On Friday, shares of AGI improved 1.94% or 17 centavos to end at P8.92 per piece. — Revin Mikhael D. Ochave

#realestateblogph | #realestateblogphpropertynews | #REBPH

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Article and Photo originally posted by Business World last November 13, 2020, 10:47pm.

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