ALLIANCE Global Group Inc. (AGI) said its net income for the third quarter slid as revenues during the period dipped despite lower expenses.
In a disclosure to the Philippine Stock Exchange, the Andrew Tan-led holding company said its third quarter profit declined by 7.1 percent to P1.3 billion from P1.4 billion a year ago.
Its revenues for the period dipped by 1.2 percent to P8.3 billion from P8.4 billion during the same three-month period in 2008.

Costs and expenses, however, were trimmed by 1.5 percent to P6.6 billion from the previous year.
Despite the lower third quarter profit, Kingson Sian, AGI president, said the company had a relatively strong first nine-months despite the tough global economic conditions, “proof that the fundamentals of our business remain strong.”

For the first nine months, AGI’s net income rose by 28 percent growth to P3.2 billion from P2.5 billion in the same period last year as revenues amounted to P25.6 billion, up by 7 percent from P23.9 billion a year ago.

AGI’s property arm, Megaworld Corp., accounted for 50 percent of the total revenues during the period, while about 45 percent came from the consumer business, primarily through Emperador Distillers.

At end-September, revenues from AGI’s food and beverage unit dropped 12 percent to P4.3 billion, while real-estate business registered a 7-percent growth to P13.2-billion. The group’s quick service restaurant—which operates under the McDonald’s brand—generated P7 billion in revenues during the first three quarters, higher by 15 percent year-on-year.

“We are confident that we executed the right strategies last year and took the right actions to drive the sustained growth,” Sian said.

From three existing businesses—property, food and beverage and quick service restaurants—the company expanded its business by entering the hotel and tourism industry under a joint venture with Star Cruises Ltd. of Hong Kong, through its subsidiary Travellers International Hotel Group Inc.

Last year, Travellers International, tied up with Star Cruises to build the country’s first 24/7 integrated tourism estate in Newport City called Resorts World Manila.

Star Cruises is part of the Malaysian conglomerate Genting Berhad, and is the world’s third largest cruise line operator.

AGI said it would invest over $500 million to develop Resorts World, which includes the 172-suite Maxims Hotel, the 342-room five-star Marriott Hotel, and a budget hotel called Remington. The three hotels will have a combined 1,500 rooms.

“We believe that our existing projects will be able to position AGI as a major player in growing tourism industry in the country,” Sian said.

Chino S. Leyco