News / Updates / Press Releases

AGI sets aside P410B for five-year capex

MANILA, Philippines, July 1, 2019— Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, is allocating P410-billion for capital expenditures (CAPEX) program from 2020 to 2024.


“Our five-year capital spending program signals our ongoing thrust to pursue an aggressive but organic growth strategy for our various businesses. It is our intention to continue to reinvest in these businesses to sustain our growth pace,” says Kevin L. Tan, chief executive officer, AGI.


The planned capital expense is higher when compared to P377-billion allocated in 2015-2019, inclusive of this year’s budget of P85-billion. It is even significantly bigger than P218-billion set aside in 2010-2014, at a time when AGI forayed into the international market.


The bulk, or around 73% of the Group’s CAPEX in the next five years, will be allocated for Megaworld Corporation, AGI’s property arm and the country’s largest developer of integrated urban townships. This will fund the company’s new and ongoing township development projects, planned residential launches and continued buildout of offices, lifestyle malls and hotels throughout the country. A portion of the budget will also be allocated for the company’s landbanking strategy in order to add to its current 4,700 hectares of developable land.


Travellers International Hotel Group, Inc., owner and operator of Resorts World Manila (RWM), will account for another 15% of the Group’s five-year CAPEX. The amount will fund largely the development of its next integrated resort, Westside City Resorts World, on a 30.5-hectare property within the PAGCOR Entertainment City complex in Paranaque. Travellers will commence with the construction of the casino and mall once piling works are completed.


About 5% of the Group’s CAPEX, on the other hand, will be allocated to Golden Arches Development Corporation (GADC), which holds the exclusive franchise to operate quick service restaurants (QSR) in the Philippines under the “McDonald’s” brand. The company continues to undertake a store expansion program that will add about 50-60 McDonald’s stores a year, from its current 633 stores. McDonald’s is also at the forefront of revolutionizing customer experience in the QSR segment with the rollout of NXTGEN stores which feature innovations such as the self-ordering kiosks, modernized menu boards and card payment acceptance. GADC plans to roll out more NXTGEN stores this year, from its current 62 stores throughout the country.


Emperador Inc., the world’s largest brandy company and owner of the fifth largest Scotch whisky manufacturer in the world, will account for 4% of the Group budget to fund its largely maintenance CAPEX. After its heavy investments since 2014, Emperador is now pursuing an organic growth strategy by fortifying its global distribution system for its premier whisky products under Whyte and Mackay, as well as its Spanish brandy products under Bodegas Fundador. The company is also expanding its product mix in the domestic market with the recent introduction of The Bar Premium Gin, while it maintains market leadership in the brandy segment with its flagship Emperador Brandy.


The balance of 3% will be allocated for Infracorp Development Inc. largely to fund its infrastructure projects, the 2-kilometer Fort Bonifacio-Makati Skytrain monorail project, and the rehabilitation of the Ninoy Aquino International Airport. Both are awaiting NEDA approval and are looking to start project implementation soon.





MANILA, Philippines, June 20, 2019 – Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, is embarking on a five-year Innovation and Digital Transformation Program, to future-proof its various businesses ranging from real estate, liquor, gaming and hospitality, quick service restaurants, and infrastructure. The program focuses on addressing the need for its various companies to adapt to technological changes that affect its businesses.


These include innovations on smart home technology for its real estate businesses, e-commerce, logistics, transportation, property technology (PROPTECH), as well as customer service management.


“This program allows us to study our existing technology across all businesses and assess where we can further enhance them and achieve innovative solutions. This will also give us the opportunity to look for other new technological innovations, platforms, and companies where we can invest in, in order to support and improve our current business operations, and at the same time, make them profitable businesses on their own,” explains Kevin Andrew L. Tan, chief executive officer, AGI.


While the conglomerate empowers each company to roll out their own initiatives, it will focus on how to synergize the various efforts to cross-benefit each company. AGI plans to form a core group, composed of representatives from its various companies, to come up with projects and share best practices.


“We are open to acquiring platforms, and even companies, that focus on particular innovations that are relevant to our various businesses,” reveals Tan.


Last year, Megaworld has initiated its iTownship program in order to build developments that are ‘future-proof’ and ready for the demands of the future. The program encompasses innovation in design, home technology, smart mobility, and even environmental sustainability, among others.


Emperador, on the other hand, has already upgraded its facilities and technology in brandy and whisky-making, including those used in its vineyards in Spain, and in its distilleries in Scotland. It is also actively pursuing the development of e-commerce platforms for its consumer products.


Travellers International Hotel Group Inc., owner and operator of Resorts World Manila (RWM), is working on further enhancing its RWM App to provide utmost convenience to all its guests and VIPs, such as making restaurant and hotel reservations, in just one touch. It is also working on enhancing the monitoring and operations of its gaming and hotel facilities through the use of data analytics.


Golden Arches Development Corporation (GADC), which holds the exclusive franchise to operate quick service restaurants (QSR) in the Philippines under the “McDonald’s” brand, is also at the forefront of revolutionizing customer experience in the QSR segment with the rollout of NXTGEN stores which feature innovations such as the self-ordering kiosks, modernized menu boards and card payment acceptance. GADC plans to roll out more NXTGEN stores this year, from its current 62 stores throughout the country.


“Part of the program is to be able to partner with relevant providers and technology-makers. Our vision is to make each company become ready for the future of business in the next 10 years,” adds Tan.




AGI posts 16% surge in Q1 profit to P6.5B

MANILA, Philippines, May 20, 2019—Alliance Global Group, Inc. (AGI), the investment holding company of billionaire Dr. Andrew Tan, chalked up a robust 16% increase in first quarter net income to P6.5 billion from P5.6 billion the year before. This was achieved as consolidated revenues rose by 19% to P41.0 billion from P34.4 billion over the same period.


Contributing strongly to the group’s remarkable results are its township development unit Megaworld Corporation, gaming and leisure operations under Travellers International Hotel Group, Inc., liquor subsidiary Emperador Inc. and quick service restaurants (QSR) business under Golden Arches Development Corporation (GADC).


“Our much-improved performance is a testament to our strong brand equity across all our business segments. We will continue to offer our premium products and excellent services to the market as we remain optimistic of the opportunities that lie ahead,” says AGI Chief Executive Officer Kevin L. Tan.


Attributable income stood at P4.4 billion, 21% higher than P3.6 billion a year before.


“We are mindful of the challenges in the external environment, but we will strive to work harder to sustain such good results,” adds Tan.


Megaworld, the country’s largest developer of integrated urban townships and market leader in the office segment, reported attributable net income of P3.8 billion in the first quarter, reflecting a 16% expansion from P3.3 billion the year before. Consolidated revenues went up by 15% to P14.9 billion, buoyed in part by the sustained 16% growthin rental income to P3.9 billion coming from its office spaces and the Megaworld Lifestyle Malls which continued to enjoy high occupancy rates.


Reservations sales in the first quarter reached P48 bllion from P42.7 billion the year before, helped by project launches worth P24 billion for the same period. We expect this to underpin the forward growth in real estate revenues which stood at P9.5 billion in the quarter, reflecting an improvement of 11% year-on-year.


Megaworld’s EBITDA grew by 19%, lifted further by the rising share of its higher-margin rentals which now account for 28% of total. Overall EBITDA margins improved to 44% from 42%.


Travellers International, owner and operator of Resorts World Manila (RWM), recorded a sharp 69% increase in EBITDA of P1.4 billion in the first quarter, as gross revenues from its gaming and non-gaming operations climbed 55% to P8.5 billion. Attributable net income reached P244 million.


Gross gaming revenues (GGR) rose 54% year-on-year and 10% quarter-on-quarter to P6.9 billion, boosted by the sharp 80% increase in volumes which cushioned the decline in blended hold rate to 4.9% (from 5.7%). Travellers’ VIP segment continued to enjoy a sequential improvement in GGR, which doubled on quarter-on-quarter and year-on-year basis as it ramps up the operations of its Grand Wing, which was soft launched last year.


Also worth noting is the 63% growth in the group’s hotel revenues to P1.8 billion from P1.1 billion. This is largely attributed to increases in the combined hotel room capacities of Travellers and Megaworld with the recent launches of Hilton Manila Hotel, Sheraton Manila Hotel, Twin Lakes Hotel and Spa, and Lucky Chinatown Hotel. The Group’s hospitality business now has a total room count of 5,175 keys.


Emperador, the world’s biggest brandy producer and owner of the world’s fifth largest Scotch whisky manufacturer, recorded consolidated revenues of P11 billion in the first quarter, up 13% from P9.7 billion the year before. Gross profit grew 10% to P3.7 billion with increasing contribution from its premium Scotch whisky and Spanish brandy products. Attributable net income stood at P1.7 billion, up 10% from last year’s P1.6 billion.


The whisky segment, under Whyte and Mackay, continues to enjoy strong sales driven by its single malt brands The Dalmore, Jura, Tamnavulin and Fettercairn, in addition to its blended whisky brands Whyte&Mackay and Shackleton.


Under the brandy segment, Fundador and Tres Cepas are now among the fastest-selling foreign brandies in the country. These brandy de Jerez products continue to define Emperador’s ongoing premiumisation strategy in the Philippine spirits market.


GADC, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported a 13% year-on-year increase in sales revenues to P7.5 billion, supported by a healthy same-store sales growth of 4.8% and its ongoing new store additions. Attributable net income amounted to P383 million, up 16% from P329 million the year before.


GADC’s total number of stores have reached 633 by the end of the first quarter period, reflecting an additional one store per week from the 620 stores in end-2018. Currently, McDonald’s has 62 NXTGEN stores all over the country, with innovative features such as the self-ordering kiosks, modernized menu boards and card payment acceptance. GADC plans to roll out more NXTGEN stores this year, elevating customer experience to a whole new level of convenience that is truly world class.


“We always need to keep our products and services relevant amidst the changing times. That way, we promote our brand equity to keep our products and services at top of mind of our various publics,” Tan explains.




AGI’s 2018 profit hits record high of P24B
Andrew Tan’s conglomerate sets aside P85-B for capital spending this year

MANILA, Philippines, April 8, 2019—Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, reported a banner year in 2018 with consolidated net income amounting to P23.7-billion from its restated profit of P22.3-billion in 2017. The Group adopted the accounting changes under Philippine Financial Reporting Standards (PFRS) 15 for its 2018 financial statements, which resulted to previous year’s performance being restated for comparability.


Consolidated revenues in 2018 ended the year at P160.7-billion, reflecting a sharp 14% increase from its year ago restated level of P141.3-billion.


“This is a milestone performance for AGI and proves that our aggressive expansion strategies which we started implementing across our various business segments about five years ago have begun to bear fruit. Now, all our major business segments are contributing strongly to the Group’s growth. We look forward to sustaining this momentum in the coming years,” says Kevin L. Tan, chief executive officer, AGI.


The Alliance Global Group is composed of its real estate arm Megaworld Corporation, global liquor subsidiary Emperador Inc., gaming and leisure operations under Travellers International Hotel Group Inc., quick service restaurants business through McDonald’s Philippines under Golden Arches Development Corporation (GADC), and infrastructure arm Infracorp Development Inc.


“We remain unrelenting in our expansion plans as we view with optimism the country’s economic prospects despite some temporary challenges. We are allocating around P85-billion in CAPEX this year, a significant increase from the P74-billion in actual expenditures in 2018. About 90% of this year’s budget will fund the healthy expansion projects of Megaworld and Travellers,” reveals Tan.


Megaworld, the country’s largest developer of integrated urban townships, posted another record year in 2018 as attributable net income reached P15.2-billion, reflecting an increase of 16% from a restated profit of P13.1-billion in 2017.


“We are very pleased with Megaworld’s performance, and will continue to buttress its position as the country’s leader in township developments, as well as its prime mover position in providing office spaces for the growing BPO sector,” adds Tan.


Consolidated revenues grew at a robust rate of 15% to P57.4-billion from P50.1-billion (restated) a year ago, driven by the 21% expansion in rental income and 11% increase in real estate sales.


Rentals from its office buildings and Megaworld Lifestyle Malls reached P14.3-billion, amid its continued expansion in gross leasable area to 1.5-million square meters (sqm). Recent additions in rental spaces include its office buildings 10 West Campus in McKinley West and Eastwood Global Plaza in Eastwood City, as well as its Festive Walk Mall in Iloilo Business Park. Real estate sales rose to P38.0-billion from P34.1-billion (restated) given increased project completions in McKinley Hill, McKinley West, Uptown Bonifacio, Westside City and Twin Lakes. Likewise, during the year, Megaworld registered an unprecedented level in sales reservations of P135-billion mainly from new project launches like Bayshore Residential Resort 2, Gentry Manor and Grand Westside Hotel, all located in Westside City, as well as Uptown Arts Residences located in Uptown Bonifacio.


Travellers International, owner and operator of Resorts World Manila (RWM), recorded an attributable net income of P1.4-billion, up sharply from P290-million a year before. Gross revenues from its gaming and non-gaming operations rose by 17% during the period to P24.7-billion while property visitation reached an average of 28,500 per day.


Gross gaming revenues (GGR) stepped up its pace, growing by 17% to P20-billion. This was bolstered by a sharp 55% improvement in VIP GGR, due in part to the opening of the ground floor gaming area at the Grand Wing. As the facility ramps up its operations, this is expected to further drive RWM’s prime gaming business moving forward.


Nonā€gaming revenues also went up by 17% year-on-year to P4.7-billion, with hotel occupancy rates hitting an average of 79%. The company’s international hotel portfolio gained another premium brand last year with the launch of the 357-room Hilton Manila Hotel. The Sheraton Hotel also soft-opened in January, adding another 391 rooms within the complex.


The combined hotel portfolio of Megaworld and Travellers now totals over 5,000 room keys, making AGI the biggest owner and operator of hotels in the country. A firm believer in the attractive potentials of the Philippine tourism sector, the Group expects to add another 1,000 rooms this year. The near-term objective is to bring its total hotel room capacity to 12,000 keys in three to five years.


Emperador, the world’s biggest brandy producer and owner of the world’s fifth largest Scotch whisky manufacturer, also posted record revenues of P47.1-billion in 2018, growing at a 10% clip from its year ago level of P42.7-billion. EBITDA grew by 8% to P10.3-billion while attributable net income rose by 5% to P6.7-billion.


Its international whisky operations under Whyte & Mackay remained the biggest driver to topline growth as its well-known brands The Dalmore, Jura, Tamnavulin and Shackleton continued to gain good traction in various markets around the world, particularly in Asia. Its premium brandy operations under Bodegas Fundador also enjoyed successes in Europe and Asia with its iconic Fundador Brandy de Jerez and Fundador Supremo.


Emperador Brandy has maintained its lead in the domestic market despite the stiff competition. Late last year, the company also introduced The Bar Premium Gin which was warmly received by the market given its unique taste enhanced by botanicals. GADC, which holds the exclusive franchise of McDonald’s in the Philippines, reported attributable net income of P1.6-billion in 2018 on sales revenues of P28.3-billion. Same-store sales growth reached 4.0%.


With its continued store expansion, GADC ended the year with a total store count of 620, compared to 566 stores in 2017. It also introduced its first 17 NXTGEN stores which have selfordering kiosks, modernized menu boards and cashless payment modes. GADC targets to add another 60 NXTGEN stores this year, further raising the bar in bringing the McDonald’s worldclass experience to consumers in the Philippines.




AGI announces P5-B share buyback program; maintains aggressive growth strategies

Manila, Philippines, September 19, 2017 — Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, has announced a twoyear share repurchase program of up to P5 billion.


“The Board of Alliance Global has approved a share buyback of up to P5 billion over a 24-month period,” said Kingson U. Sian, president, AGI. “We are undertaking this corporate action because we believe that our shares are grossly undervalued. Our Group has been consistently profitable, with attractive growth prospects, and enjoys strong brand equity and therefore views this exercise as a means to enhance shareholder value over time.”


AGI posted new levels of revenues and core net profit in 2016 of P139.6 billion and P22.8 billion, respectively. Consolidated EBITDA grew at a healthy rate of 9% year-on-year to P38.8 billion, while attributable net income rose another 6% to P14.8 billion.


“AGI continues to build on its strength with a business model that is time-tested and stress-tested,” according to Sian.


Megaworld Corporation, the country’ biggest developer and landlord of offices catering to the BPO industry, targets to bring its rental income from P10 billion in 2016 to P20 billion by 2020 when its combined office and commercial gross leasable area would have almost doubled to 2 million sqm from 1.1 million sqm currently. A market leader in township development, Megaworld is also looking to step up its residential project launches throughout the country, taking advantage of renewed brisk housing demand. In the first semester this year, the company launched P18 billion worth of projects which included Bayshore Residential Resort and Grand Westside Hotel in Westside City, San Antonio Residences in Makati and Albany in McKinley West.


Emperador, Inc., the world’s largest brandy maker, continues to benefit from its recent international forays and its highly-integrated operations which allowed for better operating margins. To maintain its leadership in the domestic liquor market, the company successfully marketed its Emperador Brandy 350-ml, Andy Cola (a ready-to-drink mix of cola and home-grown Andy Player whisky) and Hotshots Brandy (“the hottest ever”) aimed at the millennials. Whyte and Mackay, the 5th largest Scotch whisky manufacturer in the world, has widened its market penetration in Asia, the United States and travel retail through its singlemalt Scotch whisky brands The Dalmore and Jura. Scotch whisky operations contributed 28% of Emperador’s 2016 revenues.


Travellers International Hotel Group, Inc. looks forward to the completion of its Phase 3 expansion program at Resorts World Manila (RWM) which will add well known international hotel brands Hilton, Sheraton and Maxims by 2018. Together with Marriott and Holiday Inn, this should bring RWM’s total hotel room capacity to about 2,400 keys, reinforcing its position as country’s largest integrated resort with the most diversified hotel offerings. It should also complement the Marriott Grand Ballroom which is now the preferred destination for Meetings, Incentives, Conventions and Exhibitions.


Golden Arches Development Corporation (GADC) is poised to sustain its strong growth trajectory, helped by the steady rise in systemwide sales as it captures the improvement in consumer spending. It remains committed to further expanding its number of McDonald’s stores throughout the country, a move that has also brought about economies of scale, further enhancing its operating margins.


AGI has allocated capex budget of about P80bn this year, of which 75% will be spent for Megaworld’s residential development and the construction of office and commercial projects. Over 10% will fund Travellers’ ongoing expansion program at RWM, while the balance is intended for Emperador maintenance capex and GADC’s store rollout.





Newly-created company to submit unsolicited proposal to build Fort-Makati monorail project


MANILA, Philippines, October 11, 2017 – Alliance Global Group, Inc. (AGI), the holding firm of tycoon Andrew L. Tan, is diversifying into infrastructure as the current administration enters into what it calls as the ‘Golden Age of Infrastructure’ in the country.


The 24-year old conglomerate has created INFRACORP Development, Inc., a new company that will handle infrastructure projects, particularly to participate in the government’s Private-Public Partnership (PPP) projects.


INFRACORP has submitted this week an unsolicited proposal to the government to build a 2-km monorail project called Skytrain that will link Fort Bonifacio to the MRT Guadalupe Station, which hopes to benefit around 60,000 to 100,000 passengers daily.


The project, which will utilize the automated cable-propelled monorail technology, will reduce travel time from Fort to MRT Guadalupe to only five minutes. Under the proposal, a station will be built in Guadalupe, Makati near the MRT station and another in Uptown Bonifacio, a township development of AGI’s real estate arm Megaworld, at no cost to the government.


“Given the country’s strong and stable economy, we see a huge opportunity to invest in infrastructure. We are excited to participate and optimistic about the government’s aggressive push for infrastructure developments,” says Kevin L. Tan, executive director of AGI and also appointed president of INFRACORP.


Once approved, the Skytrain monorail project will take three years to construct and it could be interconnected with the subway system project passing through Fort Bonifacio that the government is set to build.


“Funding of the project will be internally-generated as part of AGI’s existing CAPEX program. We cannot disclose the exact amount of the investment yet until the government gives us the go-signal to proceed. We will follow the rightful process of this exercise,” explains Tan.


INFRACORP is also looking into other potential infrastructure projects, particularly on transport solutions, in several business districts around Metro Manila and in key growth areas around the country.




Alliance Global profits up 5% to P22.8B in 2016

MANILA, Philippines, April 6, 2017


Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, recorded a net income of P22.8- billion in 2016, reflecting an 5% increase from last year’s P21.7-billion. The conglomerate’s performance was buoyed by the continued improvement in operating efficiencies across all companies as consolidated revenues stood flat at P139.7-billion. Net income attributable to common shareholders reached P14.8-billion, up 6% from its level a year ago. “Since about three-to-four years ago, the Group has made a deliberate effort to significantly raise our level of spending to expand our geographic footprint both here and abroad, and ensure a more sustainable growth in future earnings,” says Kingson U. Sian, president, AGI.


Though still in a consolidation phase, the strategy has already allowed AGI a number of accomplishments. Megaworld now has 22 mixed-use developments all over the Philippines, spanning about 3,700 hectares. It has also expanded its office and commercial leasing businesses which now contributes to about half of its operating profits, providing the company with earnings stability. Emperador’s flagship product, Emperador Brandy, is now being marketed in 51 countries, making its way to become a global brand. This followed the acquisition of Whyte and Mackay in 2014 and Bodegas Fundador in 2015, which added quality and well-known Scottish whisky brands and Spanish brandy products in the portfolio, as well as access to over 100 markets across the globe. Travellers International’s Resorts World Manila, likewise, has maintained its position as a popular tourist destination with its diversified non-gaming amenities and attractive entertainment offerings. Even McDonald’s operations under Golden Arches aggressively expanded its stores nationwide, providing a significant boost to its profitability.


Megaworld, AGI’s property arm and the country’s leading proponent of the Live-Work-Play-Learn communities, posted a 12% year-on-year growth in core net income to P11.6-billion in 2016. Consolidated revenues rose 4% to P46.8-billion, driven mainly by its leasing operations which posted a strong 15% increase in revenues to P10-billion. About 60% of its rentals were contributed by its office segment which ended the year with 851,000 sqm in gross leasable area, reaffirming Megaworld’s position as the largest office developer and lessor in the country.


Emperador, the world’s largest brandy company, recorded a healthy 11% improvement in net income to P7.7-billion in 2016 on revenues of P41-billion. We trace the company’s strong performance to ongoing cost efficiencies given its fully integrated operations, bringing its gross profit margin to a record level of 37% last year. Of total revenues, the brandy business through Emperador and Fundador accounted for P30-billion, while the balance of P11.5-billion was contributed by its whisky business through Whyte and Mackay. Travellers chalked up EBITDA growth of 4% year-on-year to P6.4-billion as it reported gross revenues of P27.5-billion. Gross gaming revenues reached P23.6-billion, helped by the steady growth in non-VIP segment and higher win rate. Meanwhile, non-gaming revenues from its hotel operations, F&B, shopping mall and other income grew 10% to P3.8-billion. The Marriott West Wing, which became operational in November last year, added another 228 rooms, bringing to 1,454 its total hotel room count.


Golden Arches Development Corporation, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, posted a record level in revenues and profit of P22.6-billion and P1.2-billion, respectively. The robust growth in earnings was driven by the 7% improvement in systemwide same-store-sales growth, cost efficiencies and ongoing store expansion. The company ended the year with total 520 operating stores throughout the country, compared to the 481 stores in the previous year. “Despite our aggressive expansion strategy, our balance sheet remains healthy and financial gearing still very comfortable, with much room to take on new opportunities that may come our way,” says Sian. ###




Alliance Global 9M net profit grows 7% to P17.3B

MANILA, Philippines, November 14, 2016


Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, recorded net income of P17.3 billion in the first nine months of the year, reflecting a growth of 7% year-on-year. This came on the back of cost efficiencies across all business segments, allowing for better operating margins as consolidated revenues rose 2% to P101.6 billion. Net income attributable to common shareholders stood at P11.0 billion, up 4% from its level a year ago.


In the third quarter, AGI’s net income swelled by 26% to P6.0 billion, its strongest quarterly performance since the second quarter of 2013. Consolidated revenues amounted to P34.5 billion, underpinned by the sustained growth in rentals, increasing contribution from its overseas liquor business, healthy sales from its quick service restaurants and a recovery in gaming revenues.


“We have been deliberate in the execution of our growth strategies for each of our key businesses, bearing in mind the changing competitive landscape in the various sectors we are in,” according to AGI’s president Mr. Kingson U. Sian. ”Megaworld’s aggressive thrust to grow its investment properties is now paying off as this has resulted in an increased recurring income stream which has insulated the company from the vagaries of the property cycle. Travellers’ expanded amenities at Resorts World Manila continued to make it a popular integrated resorts destination despite intensifying competition in the gaming sector. In the case of the McDonald’s operations of Golden Arches, its store expansion program further enhanced its cost management, significantly boosting its bottomline performance. Meanwhile, Emperador’s global strategy has provided it with another leg of growth as it expands its international presence. The company now has an unrivaled portfolio of quality and wellknown foreign and local brandy and whisky products, paving the way for its premiumization strategy in the domestic liquor industry”, says Mr. Sian.


Megaworld, the country’s premier developer of integrated urban townships, posted a healthy 11% year-on-year growth in net income to P9.3 billion for the first three quarters of the year, helped by an improvement in operating margins. Consolidated revenues rose 5% to P35.3 billion, underpinned by a sustained 15% increase in office and commercial rental income. The company is expected to bring its office gross leasable area to about 851,000 sqm by the end of the year, reaffirming its position as the country’s largest lessor of office spaces. Emperador, now a global player in the liquor industry and the world’s largest brandy company, recorded a net income of P4.9 billion in the first nine months of the year, up 5% year-on-year, traced to operating efficiencies. Consolidated revenues amounted to P27.9 billion as the group benefitted from the increased access to international markets provided by its new acquisitions. Of total revenues, the brandy business through Emperador and Fundador accounted for P20.2 billion, while the balance of P7.7 billion was contributed by its whisky business through Whyte and Mackay.


Travellers reported a 5% year-on-year increase in nine-month profit to P3 billion on gross revenues of P20.8 billion and EBITDA of P4.9 billion. Gross gaming revenues in the third quarter grew strongly by 14% to P6.2 billion, helped by overall volume growth and an improvement in hold rate. This brought its EBITDA for the same quarter 35% higher to P1.9 billion, thereby boosting its net income by 154% to P1.2 billion. Meanwhile, non-gaming revenues from its hotel operations, F&B, shopping mall and other income grew 11% in the nine-month period. Its Marriott West Wing will become operational within the year, adding another 228 rooms to its current room count of 1,226 coming from Maxims Hotel, Remington Hotel, and Marriott Hotel Manila. “This should make Resorts World Manila the largest hotel owner amongst the country’s integrated resorts and underscores the Group’s firm commitment to help develop the tourism industry,” says Mr. Sian.


Golden Arches, which holds the exclusive franchise to operate restaurants in the Philippines under the “McDonald’s” brand, reported a robust 57% year-on-year increase in net income to P819 million in the first three quarters of the year. The strong growth in profit was driven by the 11% jump in sales revenues to P16.4 billion as system wide same-store-sales grew by 8% year-on-year. This was helped along by the expansion in GADC’s operating stores which reached the 500 milestone in the third quarter, rising from 468 stores a year ago.


“AGI is operationally leveraged to take advantage of any improvement in market conditions. We look forward to the seasonal uptick in sales on the back of the coming holiday spending which to help boost our profitability,” added Mr. Sian. ##




Tycoon Andrew Tan receives Global Excellence Award

October 13, 2016


Global Excellence Award
Andrew Tan (second from right) receives the Global Excellence Award at the 42nd Philippine Business Conference from President Rodrigo R. Duterte (second from left). Looking on are (from left) Finance Secretary Carlos G. Dominguez III and Jose Maria A. Concepcion III, incoming chairman of the ASEAN Business Council.

The International Chamber of Commerce Philippines (ICCP) presented to business tycoon Dr. Andrew L. Tan the Global Excellence Award in ceremonies held during the 42nd Philippine Business Conference at the Marriott Hotel Thursday night.


The award recognizes Tan, who chairs the conglomerate Alliance Global Group Inc. which owns Megaworld, Emperador, Travellers International (operator of Resorts World Manila) and McDonald’s Philippines (Golden Arches Development Corporation), for raising the bar of Philippine business to compete locally and internationally, and in helping the national achieve inclusive growth and development.


The ICCP also recognized Tan’s scope of work and influence in the real estate, food and beverage, construction and tourism sectors that continues to inspire aspiring entrepreneurs and businessmen to reach their full potential and to contribute to nation-building.


The award was presented by Philip Kucharski, chief operating officer of the Paris-based International Chamber of Commerce and President Rodrigo Roa Duterte.




AGI to spend more than P150B for two-year expansion programs across businesses
After posting record performance in 2015, Alliance Global remains upbeat over long-term prospects

September 29, 2016


Manila, Philippines, September 29, 2016 – Alliance Global Group, Inc. (AGI), the investment holding company of tycoon Dr. Andrew L. Tan, is allocating more than P150-billion for this year until 2017 to finance the various expansion plans of its companies.


“We continue to be optimistic about what lies ahead. That is why we have kept an aggressive capex plan moving forward. In 2010 to 2015, we spent an aggregate of P270 billion for our expansion projects. We will spend more than half of that amount for 2016 and 2017 alone, proving our positive outlook for our business,” says Mr. Kingson U. Sian, president, AGI.


AGI maintains its highly optimistic outlook over its long-term prospects after reporting record revenues and core profit of P139 billion and P21.6 billion, respectively, in 2015. The company continues to pursue heavy capex plans as it firms up the foundation for its future growth. Earlier, AGI chair Dr. Andrew L. Tan told stockholders that the company’s “strong operating performance in 2015 only serves to inspire us to continue to do better to accelerate our growth trajectory and maintain our market leadership. We have already laid out the foundation and made significant investments across all our business segments, both here and abroad, in order to future-proof our growth.”


“Our Group has really come a long way from what we were before. Five years ago, our real estate arm, Megaworld Corporation, covered only five townships, all in Metro Manila. Now, we have 21 townships throughout the country, of which 12 are in key growth areas in the provinces,” explains Mr. Sian.


Megaworld continues to lead in township development and is also the biggest developer and landlord of offices for the country’s BPO industry. The company plans to continue expanding its office and commercial properties nationwide to keep itself at the crest of the wave of growth cities all over the Philippines.


“Moreover, only three years ago, Emperador, Inc. was a pure Philippine liquor operation where it maintains market leadership. Now, it has become a global player in the spirits sector with access to about 100 markets around the world. This followed our acquisition of Whyte and Mackay, and more recently, Fundador and the other Spanish assets,” adds Mr. Sian.


Capitalizing on its expanded global footprint, Emperador Brandy is now being exported to 40 countries in Asia, North America, Europe, Africa and the Middle East, reinforcing its position as the world’s No. 1 brandy product in terms of volume.


AGI is also on-track in its expansion program in the tourism sector with the objective of bringing its group-wide hotel room capacity to 12,000 keys by 2020 from the current 3,000 room keys. The additional capacity will be coming mainly from its tourism-entertainment and gaming unit Travellers International Hotel Group, Inc. and Global-Estate Resorts, Inc. (GERI), a Megaworld subsidiary. Travellers is in the midst of its massive expansion projects in Resorts World Manila.


Meanwhile, GERI is undertaking two major tourism estate development projects in highly popular destinations: Boracay Newcoast in Boracay Island, Aklan; and Twin Lakes in Metro Tagaytay.


Even its quick service restaurant business through Golden Arches Development Corporation (GADC) is spending heavily to increase its number of McDonald’s stores nationwide to ride on the overall improvement in consumer demand. GADC is poised to hit its 500th store this year and is looking to grow the number to 900 stores moving forward. “Our continued investments have given our Group a competitive edge that is difficult to match. With all the pieces already in place, we believe that we have set the stage for a strong long-term growth,” said Mr. Sian.




The World Tonight: PH firm investment boosts Spanish city's economy

September 9, 2016


A Filipino firm's purchase of Spain's oldest brandy maker has enabled local products to enter the world market. More in this report by Ces Oreña Drilon.




AGI chair Andrew Tan leads the 2016 Tourism Personality Awardees

September 16, 2016


Alliance Global Group, Inc. (AGI) chairman Dr. Andrew L. Tanwas named as this year’s Leader in Integrated Tourism Enterprise, the highest award given by SKAL International Makati,duringthe 26th Tourism Personality Awards held recentlyat New World Makati Hotel.


AGI, the holding firm of Dr. Tan, aims to become the largest hotel developer in the Philippines, targeting to build around 12,000 hotel rooms by 2020.Travellers International Hotel Group, Inc.currently operates Marriott Hotel Manila, Maxims Hotel and Remington Hotel in Newport City, comprising a total of 1,226 hotel rooms and 172 suites.


Megaworld, on the other hand, is currently operating three Richmonde Hotels and one Belmont Hotel, with almost 1,000 rooms. It will also launch its third local hotel brand, Savoy Hotel, in BoracayNewcoast by the end of the year.


Receiving the award on Dr. Tan’s behalf was Kingson U. Sian, president, AGI (second from left) from (L to R) Robert Sohn, president, SKAL International-Makati, Randal Linhart, resident manager, New World Hotel Makati and DeedeeLedonio, secretary general, SKAL International-Makati.




Alliance Global Group Inc. records revenues of P32 billion in Jan-Mar 2015

May 20, 2015


Alliance Global Group, Inc. (AGI) posted a net income of P5.6 billion in the first three months of this year, almost the same level of earnings in the same period of 2014. This was achieved on consolidated revenues of P32.3 billion, around 5% higher year-on-year. Net income attributable to AGI went up by 4% to P3.5 billion. These figures exclude non-recurring gains. In terms of resources, AGI’s balance sheet strength was underpinned by total assets of P412 billion with cash of almost P76 billion.


“Our consumer-centric businesses – real estate development, food and beverage manufacturing and distribution, integrated tourism development, and quick-service restaurants – all showed profitability in the first three months of this year. They all maintained their strong positions in their respective industries,” said Kingson U. Sian, AGI’s president and chief operating officer.


On a standalone basis, the majority-owned companies of AGI all delivered strong earnings in the first three months of this year. Megaworld Corporation reported a net income of P2.3 billion; Emperador Inc. delivered P1.4 billion in earnings; Travellers International Hotel Group, Inc. made a net income of P1.7 billion; and Golden Arches Development Corporation (GADC) posted a net income of almost P160 million.


Mr. Sian added, “Our companies are all paving the way for future growth that will ultimately increase shareholder value. Megaworld is building more townships this year. Our target is to have 20 township developments by the end of 2015. Emperador will have its busiest year so far with product launches in the offing. One product was launched last month and is now available in retail outlets, Smirnoff Mule, which is a blend of vodka, ginger beer and lime. Consumer response is positive and exciting. Travellers continues to expand Resorts World Manila where the Marriott Grand Ballroom – the largest ballroom in the country – just opened last month. Travellers will have more hotels, additional gaming area and retail space by the end of 2017. GADC, which holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand, is targeting to have 500 branches nationwide by the end of 2015.”




Alliance Global Group, Inc. rakes in record-breaking net income of P21-billion in 2014

April 24, 2015


MANILA, Philippines, April 24, 2015 - Alliance Global Group, Inc. (AGI) raked in a net income of P21-billion last year, reflecting an 8% increase over 2013 (net of non-recurring or extraordinary items) – the highest level in the company’s history. This record-breaking income was achieved on consolidated revenues of P125 billion, also a record level for the Andrew Tan-led conglomerate, which is engaged in property development, food and beverage manufacture and distribution, quick-service restaurants and integrated tourism development businesses.


“We feel elated and excited about our performance. The consistent robust performance of our group is underpinned by our commitment to focus on what we do best. Yes, we are always open to opportunities but our core businesses are borne out of passion, creativity, and innovation. We are proud to say that we are game changers and brand builders.  And we will constantly strive to raise the bar,” said Kingson U. Sian, president and chief operating officer, AGI.


Driven by AGI’s majority-owned companies – Megaworld Corporation, Emperador Inc., Travellers International Hotel Group, Inc., and Golden Arches Development Corp. (GADC) – net income attributable to AGI shareholders reached P13 billion last year, down by 4% on a recurring basis. This was due to net income attributable to minority interests or non-controlling interests increasing by as much as 35% year-on-year. This increase was in turn a result of AGI having reduced ownership in Emperador and Travellers last year following their initial public offerings (IPOs) in the latter part of 2013. Prior to the IPOs, AGI had 100% stake in Emperador and 50% stake in Travellers.


On a standalone basis, the individual companies of AGI all delivered strong earnings last year. Megaworld reported a net income of P9.4 billion: up 14% year-on-year. Emperador delivered P6.2b in earnings: up 6% year-on-year. Travellers raked in P5.4 billion, higher by almost 100% year-on-year. GADC posted a net income of almost P800 million in 2014.


Sian added, “Our businesses are all compelling consumer plays. Megaworld is the pioneer in live-work-play-learn township developments and remains unmatched in this area. Emperador is a genuine game changer that has a 50% market share nationwide and as high as 72% in Greater Manila area. And it is now a global company given last year’s acquisition of Whyte and Mackay, a Scotch whisky company. Travellers International is the country’s most profitable tourism-entertainment and gaming company and it is the only one that has two tourism-entertainment and gaming sites. GADC, which holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand, had 457 branches all over the country at the end of 2014. GADC opened more than 50 branches last year, the biggest number of openings in its history.”


AGI is listed on the Philippine Stock Exchange with stock code AGI. Its latest market capitalization is P265 billion.