Alliance Global Group Inc. (AGI), the holding company of bilyonaryo Andrew Tan, grew its net income by 9 percent in the first nine months of the year, reaching P12.9 billion, buoyed by a revived consumer spending and improved business activity despite macroeconomic headwinds.
However, in the third quarter, AGI’s net profit was flat at P3.68 billion even as revenue expanded by 16 percent to P51.3 billion.
Kevin L. Tan, CEO of AGI, said: ‘The Alliance Global Group has sustained its strength in the first nine months of the year, even in the face of persistent domestic and global economic challenges. During this period, the group continued to introduce new and exciting experiences across all our business segments, delivering superior products and services in the local and international markets.”
AGI’s property arm, Megaworld, reported a 43 percent jump in nine-month earnings, reaching P12 billion, as revenues rose 14 percent to P48.6 billion amid an uptick in demand for residential properties. Real estate sales, which accounted for 60% of total revenues, grew by 11 percent to P29 billion, almost reaching pre-pandemic levels.
Sales reservations also increased by 28% to P109.5 billion, driven by attractive big-ticket projects catering mainly to the mid- to high-income segments of the residential market.
Tan’s leisure and tourism arm, Travellers International swung to a P773 million profit during the nine-month period as revenues exceeded pre-pandemic levels, hitting P23.3 billion—a 27 percent growth year on year. This was driven by the resurgence in tourism and MICE activities, allowing for a robust 41 percent jump in hotel and other revenues to P5 billion, while gross gaming revenues rose by 14 percent to P25.9 billion.
GADC, the local franchise holder of the global fast-food giant McDonald’s, sustained its growth momentum with earnings rising by 44 percent to P1.47 billion. Revenues rose by 28 percent to P23.9 billion on the back of new product offerings and affordable pricing. A partnership between Tan and bilyonaryo George Yang, GADC closed the third quarter with a total of 705 stores across the country.