Alliance Global Group Inc., the listed holding company of billionaire Andrew Tan, is looking to expand its integrated resort and casino venture outside Metro Manila amid the strong recovery of the domestic tourism and gaming business.
“We are looking at some key tourism hubs all over the Philippines as potential expansion sites for our integrated resort business,” AGI chief executive Kevin Andrew Tan said during the company’s annual stockholders meeting Thursday.
AGI through unit Travellers International Hotel Group Inc. operates two integrated resorts and casino—the Newport World Resorts in Pasay City and Manila Bayshore in Paranaque City.
AGI is also taking full ownership of NWR after buying out joint venture partner Genting Hong Kong’s 40-percent sake in the resort and casino business.
AGI is making an aggressive expansion plan on expectations that domestic tourism and gaming industry would recover as international travel rebounds.
TIHGI returned to profitability with net income hitting P1.1 billion in 2022 as gross gaming revenues reached a record P31.8 billion, driven by sustained VIP business and improvement in mass segment.
Non-gaming revenues hit P5.3 billion, up 86 percent from P2.9 billion a year earlier on the back of higher hotel occupancy and increased MICE ( meetings, incentives, conferences, and exhibitions) activities.
AGI allocated P4 billion for 2023 capital expenditures for TIHGI mainly for its ongoing expansion projects at the Newport World Resorts complex.
Tan said the company planned to increase the share of its premium mass segment to half of gross gaming revenues. It also prepares to expand the VIP junket operations, which in 2022 registered revenues representing 175 percent of pre-pandemic level.
Meanwhile, the board of AGI approved to extend by one year the share buyback program and increase its budget by another P2 billion.
The share buyback program will be up to April 8, 2025 from the original period of April 8, 2024.
“The extension and the increase in the allocated amount are still geared towards enhancing shareholder value,” AGI said.