Alliance Global posts reduced profit of P3.8 billion

Alliance Global Group Inc., the holding company of tycoon Andrew Tan, posted a net income of P3.8 billion in the first six months of 2020, down 53 percent from P8.1 billion year on-year, on lower contribution from core businesses.

AGI said in a disclosure to the stock exchange Friday first-half revenues declined 26 percent year-on-year to P61.4 billion as the strict community quarantine imposed during the second quarter of the year significantly affected its property, gaming and quick service restaurants businesses.

“The country’s strict two-month lockdown weighed heavily on most of our domestic operations. We take comfort from the fact that we have managed to diversify our sources of income, either by type of products or by geographic contribution, and this has helped us mitigate the impact of this pandemic on our group performance,” said AGI chief executive Kevin Tan.

Property unit Megaworld Corp. saw its net income decline 33 percent to P5.4 billion in the first half of 2020 from a year ago and consolidated revenues drop 25 percent to P23.8-billion.

The community quarantine severely affected the operations of gaming unit Travellers International that were temporarily suspended.

Travellers International, which owns and operates Resorts World Manila, recorded a net loss of P3.7 billion in the first half this year, a reversal from a P845-million net income the year before.

Gross gaming revenues declined by over a half to P6.1 billion, while non-gaming revenues fell 44 percent to P1.7-billion.

Golden Arches Development Corp., the master franchise holder of McDonald's in the Philippines, registered a net loss of P709 million in the first half this year, a reversal from a net profit of P751 million in the same period last year.

Only about 38 percent of McDonald’s stores were operational at the start of the lockdown, while activities were limited to take-outs, drive-thru, and delivery services as dine-in was not allowed.

Some 668 McDonalds stores are operational as of end June.

Liquor unit Emperador Inc. recorded a two percent year-on-year improvement in attributable profit to P3.3 billion in the first half this year, boosted by higher international sales.

“This global health crisis has brought us new learnings. We have modified our product offerings and acquired new skills to adapt to the changes in consumer behavior. Likewise, our move to transform our operations under a digital strategy, an undertaking we have started only last year, has supported most of our businesses especially during the strictest period of the community quarantine,” Tan said.

Topics: Alliance Global Group Inc. , Andrew Tan , Kevin Tan , Megaworld Corp.
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