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Friday, March 29, 2024

Alliance Global posted P14.9-billion earnings in 2017

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Conglomerate Alliance Global Group Inc., the holding company of tycoon Andrew Tan, said net income attributable to common shareholders reached P14.9 billion in 2017, unchanged from 2017, as the weak results from liquor and gaming units pulled down the strong performance of real estate and quick service restaurant businesses.

AGI said despite the weak 2017 performance, it remained on expansion mode and budgeted P80 billion in capital expenditures for 2018, up 14.2 percent from P70 billion it spent in 2017.

The group said about 75 percent of this year’s capital spending would go to real estate arm Megaworld, mainly for the development and investment in property projects which would allow it to sustain healthy earnings growth.

Another 15 percent of the 2018 capex will be spent by Travellers International Hotel Group Inc. to complete the third phase of Resorts World and boost its hotel and overall gaming capacity.

“2017 has been a rather challenging year for the group but that never deterred us from pursuing our growth ambitions. As we move forward, we remain focused on investing in our future,” AGI president Kingson Sian said.

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AGI said consolidated revenues went up slightly in 2017 to P141.8 billion as the strong results from  real estate operations and quick service restaurants business cushioned the weakness in gaming and leisure operations and the modest rise in liquor sales. 

AGI’s property unit Megaworld Corp. registered a 13-percent growth in net income to P12.8 billion in 2017 as consolidated revenues rose 8 percent to P50.4 billion.

Megaworld strong financial performance was boosted by the 18-percent expansion in rentals to P11.8 billion coming from Megaworld’s office buildings and lifestyle malls.

Golden Arches Development Corp., which holds the exclusive franchise to operate McDonald’s in the Philippines, also delivered strong results with net income rising 33 percent in 2017 to P1.6 billion.

Sales revenues rose 12 percent to P25.5 billion, boosted by a 5.8-percent systemwide same-store-sales growth and the ongoing store expansion. The company ended 2017 with a total of 566 operating stores throughout the country, up from 520 stores in 2016.

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