Vol. XXII, No. 193 [ BusinessWorld Online ]
Monday, May 5, 2009 | MANILA, PHILIPPINES
NET INCOME from its property unit drove the profits of Andrew Tan-led Alliance Global Group, Inc. to record high last year.
In a statement, Alliance Global said net income grew 19% to P6.1 billion last year, equivalent to an earnings-per-share ratio of P0.38. This meant a return on investment of 5.44%, while price-to-earnings ratio stood at 4.94.
Revenues rose 18% to P36.1 billion last year.
"Alliance Global’s real estate subsidiary, Megaworld Corp., was a key driver of growth which contributed almost half to the holding firm’s total revenues," the company said.
Net income of Megaworld rose to P3.8 billion last year from the previous year’s P3.04 billion.
Alliance Global said Megaworld will continue its thrust as a leading developer of mid-income residential condominiums and a key provider of office space for the business process outsourcing industry.
Alliance Global’s consumer product interests — through Emperador Distillers Inc. and Golden Arches Development Corp., which oversees McDonald’s outlets in the Philippines — accounted for 39% of revenues.
Combined revenues from these two businesses, however, declined by 2.8% to P14.1 billion last year.
"The consumer business will remain weak as the global economic recession continues to weigh on the economy," Alliance Global said in its statement.
Alliance Global, through subsidiary Travellers International Hotel Group Inc., last year entered into joint venture with Star Cruises Ltd. to build the mixed residential-commercial-office complex, Newport City, across Terminal 3 of the Ninoy Aquino International Airport.
Star Cruises, part of the Malaysian conglomerate Genting Berhad, is touted as the world’s third largest cruise line operator.
Alliance Global will invest almost $500 million to build the Newport City project, which will host the all-suite Maxims Hotel, the five-star Marriott Hotel and a budget hotel called Remington Hotel. The hotel series will have a total capacity of 1,540 rooms and is expected to be completed this year.
Travellers will also build Bayshore City, an integrated tourism complex in the Manila Bay area, which will host hotels, an entertainment complex, museums and restaurants.
Share prices of Alliance Global yesterday did not move at P1.88 per share. — KJRL
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