Andrew Tan's AGI reports Q1 net income up 10.6% to nearly P4B 

Alliance Global Group Inc. (AGI) posted P3.94 billion in net income for the first quarter, up 10.6 percent from P3.56 billion a year earlier, lifted by the property, liquor and gaming businesses.

 

Consolidated revenues were up 3.2 percent to P31.23 billion from P30.26 billion in the same comparable period, the Andrew Tan-led company said in a disclosure to the Philippine Stock Exchange on Tuesday.

 

Sales in real estate, alcoholic beverages and snack products rose 19 percent to P15 billion.

 

However, sales from gaming, hotel, quick-service restaurants, and rentals declined by 9 percent – mainly dragged by a 23-percent drop in gaming revenues which accounted more than 50 percent of service revenues.

 

For this year, the conglomerate said it will continue to adopt prudent measures to ensure financial sustainability and look for new opportunities that will enhance the overall profitability of the group.

 

“In 2014, all the business segments are expected to grow revenues and profits in line with targets,” the company told the exchange.

 

Property unit Megaworld Corp. recorded a net profit of P2.69 billion, up 49 percent from P1.81 billion.

 

Emperado Inc. registered a net profit of P1.72 billion, up 19 percent from P1.45 billion.

 

Gaming concern Travellers International Hotel Group Inc. contributed a net profit of P1.72 billion, up 73 percent from P995 million.
 

But Golden Arches Development Corp., the franchise holder of McDonalds, reported a 26 percent decline in net income to P171 million from P234 million, citing higher cost of raw materials.

 

Consolidated total assets reached P336.4 billion, from P332 billion at the start of 2014.

 

Loan payments of P4.3 billion to cover the obligations of Travellers International, plus a $3.2-million investments by Emperador in a Spanish associate, and the capital expenditure of Megaworld reduced the cash and cash equivalents held by AGI, the company said. –  VS, GMA News