Andrew Tan's holding firm posts higher earnings in H1

ABS-CBN News

Posted at Aug 11 2010 01:06 PM | Updated as of Aug 12 2010 01:28 AM

MANILA, Philippines - Earnings of Alliance Global Group Inc., the holding firm of tycoon Andrew Tan, grew 36% in the first 6 months of 2010, owing to its brisk real estate and consumer businesses.

In a statement, Alliance Global reported that its net income rose to 4.83 billion in January to June 2010 from P3.56 billion in the same period last year. Net income attributable to shareholders rose to P3.69 billion from P2.58 billion.

Earnings before interest, taxes, depreciation, and amortization or EBITDA went up 21% to P6.3 billion from P5.2 billion, while consolidated revenues increased 22% to P21.26 billion from P17.41 billion.

Property unit Megaworld Corp. accounted for 46% of revenues as it enjoyed higher sales from residential projects such as McKinley Hill, Newport City, and Manhattan Garden City, as well as an increase in rental revenues from its office buildings.

Contributing the other bulk or 44% of revenues was Alliance Global's consumer business, through Emperador Distillers Inc. and McDonald's franchise holder Golden Arches Development Corp.

Tourism unit Travellers International Hotel Group Inc., meanwhile, turned in equity earnings of P595 million in the first semester.

"We are quite pleased that our results show strong revenue growth across all lines of business. Our results confirm that our strategy to focus on key industries and accelerate growth, particularly in the tourism industry, is working," said Alliance Global president Kingson Sian.

Sian said they have several projects lined up in the tourism sector, and these include the 540-room Hamilton Hotel in Newport City, where they also operate a 24/7 integrated casino, Resorts World Manila.

Set for ground breaking this quarter, Hamilton comes after the Marriott and Maxims hotels, both already operational, and the ongoing Remington Hotel, which is expected to be completed by the first half of 2011.

Hamilton will be completed in 2012, bringing the total number of hotel rooms in Newport City to about 1,900. Two more hotels are programmed to rise in the same location in the next 5 years.

"While our priority is to drive profitable growth for our shareholders, we remain mindful of the needs of our country, particularly in the tourism sector, and, therefore, align our focus with the government's thrust to boost tourist arrivals in the country and expand the impact of the tourism industry on the rest of the economy," Sian said.