Real-estate, tourism boost Alliance Global H1 profit by 60%

Alliance Global Group Inc. (AGI) grew its attributable net income by 60 percent to P14 billion in the first semester, as real estate and tourism-related businesses delivered higher earnings.

Including minority interest, six-month net income rose by 39 percent to P19.2 billion, AGI disclosed to the Philippine Stock Exchange on Thursday.

Taking out nonrecurring items, AGI said its “normalized” six-month income stood at P15.1 billion, up 19 percent.

Earlier this year, fast-food operator Golden Arches Development Corp. (GADC)—a company where AGI holds a 49-percent stake—was deconsolidated in its financial statements and is now treated as an associate. This resulted in one-time gain of P3.4 billion.

Group revenues amounted to P100.9 billion, inclusive of gains from GADC deconsolidation.

Normalized consolidated revenues amounted to P87.1-billion, up by a modest 3 percent. Attributable net income would have risen by 23 percent to P10.1 billion in the first semester.

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In the second quarter alone, attributable net profit grew by 25 percent to P5.3 billion on the back of normalized consolidated revenues of P45.3 billion.

“AGI delivered strong results in the first half of the year, benefiting from a buoyant domestic economy despite ongoing global uncertainty. During this period, our Group took advantage of pockets of opportunities in the market to boost our residential and retail sales, as well as our office takeup,” said Kevin Tan, AGI president and CEO.

“Our tourism and leisure segments also enjoyed increased activities and occupancy, tapping into the increasing demand for staycations and MICE (meetings, incentives, conferences and exhibitions) events,” he said.