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.
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. ###
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.
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
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. ##
October 13, 2016
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.
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.
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
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.
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.
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.
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.”
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.