Alliance Global Group Inc., the holding company of billionaire Andrew Tan, said net income fell by 32 percent in the first quarter to P3 billion from P4.4 billion in the same period last year as core businesses were affected by the coronavirus pandemic.
AGI said in a disclosure to the stock exchange Tuesday first-quarter consolidated revenues slipped 7 percent to P38 billion from last year’s P41 billion.
“We started 2020 with twin challenges, and these are changing the way we live and do business today,” AGI chief executive Kevin Tan said.
He said to adapt to changed consumer behavior, AGI planned to accelerate digital strategy within its core businesses including real estate, leisure, entertainment and hospitality, spirits manufacturing, quick service restaurants and infrastructure.
“While most businesses have been affected by this health crisis, the situation reinforced our belief that our business model is sound and sustainable. For instance, we view our decision to focus on township developments as the way of the future. Even our foray into the international market for our spirits business has allowed us to diversify our risks, even as this pandemic has global dimensions,” Tan said.
Megaworld recorded a 9-percent decline in attributable net income to P3.5 billion from P3.8 billion a year ago, as consolidated revenues were flat at P15.1 billion.
Travellers International, the owner and operator of Resorts World Manila, suffered a net loss of P1 billion in the first quarter, a turnaround from the P244-million net income a year earlier. Total gross revenues declined by 19 percent year-on-year to P6.9-billion, mirroring the same drop in gross gaming revenues to P5.6 billion.
Liquor unit Emperador recorded a 16-percent year-on-year decline in attributable profit to P1.5 billion in the first quarter as revenues slowed 3 percent to P10.7 billion.
Golden Arches Development Corp. saw its attributable net income plunge by 72 percent to P108 million as some of its store operations were disrupted by the Taal Volcano eruption in January and the community quarantine in mid-March.
GADC, a long-term partnership between AGI and the George Yang Group that holds the exclusive franchise to operate restaurants in the Philippines under the ‘McDonald’s’ brand, ended the quarter with 669 stores.