Manila—(PHStocks)—Alliance Global Group Inc. (PSE: AGI) posted a net income of PhP5.3 billion in the first three months of this year, about 5% lower from its level a year ago, as consolidated revenues were generally steady at PhP33.1 billion.
“We executed well in the first quarter despite the heavy external headwinds and the initial uncertainty leading to the May elections,” said Kingson U. Sian, president and chief operating officer, AGI.
The investment holding company of tycoon Andrew Tan, AGI, leveraged on the underlying strength of its subsidiaries, such that “when election spending, sharp decline in oil prices, and government expenditures pushed up domestic demand in the first quarter, our subsidiaries were able to maintain their respective industry footing,” says Sian.
Megaworld Corp. (PSE: MEG), AGI’s flagship property company and the country’s largest developer of integrated urban townships, delivered a 12% year-on-year increase in earnings to PhP2.63 billion. Consolidated revenues, which include the contribution from its subsidiary brands Global-Estate Resorts Inc. (PSE: GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to PhP11.5 billion, up 9% from PhP10.5 billion a year ago.
This was supported by the robust 15% growth in rental income to PhP2.3 billion as the company maintains its position as the country’s biggest lessor of office spaces with its ongoing expansion program. Residential sales continued to grow in the first three months of the year, rising 10% year-on-year to PhP6.86 billion backed by its 20 integrated townships throughout the country and a total landbank of around 4,000 hectares across the Philippines.
Emperador Inc. (PSE: EMP)continued its transformation into becoming a world-class liquor company as it took over the 286-year old Bodegas Fundador from Beam Suntory in February, making it the largest brandy company in the world.
This followed Emperador’s acquisition in 2014 of Scotch whisky company, Whyte and Mackay, expanding its portfolio to include single malt whiskey brands, notably The Dalmore and Jura.
Emperador reported a net profit of PhP1.4 billion in the first quarter, coming on back of nearly PhP9 billion in consolidated revenues. Domestic sales grew 19% as the company maintained its brandy dominance in the local liquor market. Moving forward, Emperador intends to capitalize on premiumization opportunities in the Philippine market with its broad spectrum of products ranging from standard to ultra-premium offerings.
Travellers International Hotel Group Inc. (TIHGI, PSE: RWM) posted a net profit of PhP1.2 billion in the first three months of 2016 as the company continues to focus on achieving quality of earnings by building on the non-VIP segment and expanding its non-gaming business. Gross revenues stood at PhP6.6 billion and EBITDA at PhP1.4 billion.
Gross gaming revenues amounted to PhP5.6 billion, led by the mass segment which saw an improvement in drops. Meanwhile, revenues from its hotel, F&B and other operations, grew 26% to PhP982 million, partly on account of the contribution from the Marriott Grand Ballroom which was formally launched in June last year. Travellers International is the owner and operator of Resorts World Manila (RWM), which is the site of the massive Phase 2 and Phase 3 expansion in Newport City.
Golden Arches Development Corp. (GADC), which holds the exclusive franchise to operate restaurants in the Philippines under the McDonald’s brand, reported a 19% increase in net income to PhP191 million, benefiting from election spending.
“We remain very positive on the AGI Group’s prospects and we look forward to the planned initiatives of the new administration. We are a believer of the Philippine growth story and our businesses are very well positioned to participate in such growth,” adds Sian.