ALLIANCE Global Group Inc. (AGI), the listed holding firm of property tycoon Andrew Tan, said on Friday 2014 was a record-breaking year for the company after its net income surged to P21 billion, up 8 percent from P19.5 billion in 2013 on the strong performance of its business segments.
However, consolidated net income dropped 8 percent to P21 billion from P23 billion the previous year because of the absence of non-recurring gains, said Kingson Sian, AGI president and chief operating officer.
He said AGI reduced its ownership in Emperador Inc. and Travellers International Hotel Group Inc. following their initial public offerings (IPOs) in the latter part of 2013, which resulted in a lower revenue share since 2014.
Prior to the IPOs, AGI had 100 percent stake in Emperador and a 50 percent interest in Travellers, Sian said.
The company’s consolidated revenue surged to a “record level” of P125 billion from P113.2 billion on the back of the strong performance of all its business segments, Sian said.
“We feel elated and excited about our performance. The consistent robust performance of our group is underpinned by our commitment to focus on what we do best. Yes, we are always open to opportunities but our core businesses are borne out of passion, creativity, and innovation,” he said.
“We are proud to say that we are game changers and brand builders. And we will constantly strive to raise the bar,” he said.
AGI reported the following growth in its business segments: Megaworld Corp.’s net income went up 14 percent to P9.4 billion; Travellers’ net income more than doubled to P5.44 billion from P2.73 billion; Emperador’s profits rose 5 percent to P6.1 billion from P5.8 billion; and McDonald’s franchise holder Green Arches Development Corp. (GADC) posted a net income of P800 million last year.
“Our businesses are all compelling consumer plays. Megaworld is the pioneer in live-work-play-learn township developments and remains unmatched in this area,” Sian said.
“Emperador is a genuine game changer that has a 50-percent market share nationwide and as high as 72 percent in Greater Manila area. It is now a global company given last year’s acquisition of Whyte and Mackay, a Scotch whisky company. Travellers International is the country’s most profitable tourism entertainment and gaming company and it is the only one that has two tourism entertainment and gaming sites,” he said.
“GADC, which holds the exclusive right to operate restaurants in the Philippines under the McDonald’s brand, had 457 branches all over the country at the end of 2014. GADC opened more than 50 branches last year, the biggest number of openings in its history,” he added.
As of end-December last year, AGI’s market capitalization stood at P265 billion.
Incorporated in 1993 and listed on the stock exchange in 1999, Alliance Global is in property development (Megaworld); food and beverage manufacture and distribution (Emperador); quick-service restaurants via McDonald’s franchise (GADC); and integrated tourism development businesses (Travellers).