Alliance Global Group, Inc.’s (AGI) net income in the first semester plunged by 67% to P4.1 billion as quarantine restrictions limited the operations of its businesses
The Andrew Tan-led firm in a stock exchange disclosure, Friday, said its total revenues between January and June fell by over a quarter to P61.4 billion.
“The country’s strict two-month lockdown weighed heavily on most of our domestic operations,” AGI Chief Executive Officer Kevin L.Tan said. The government placed the country under enhanced community quarantine in mid-March and April.
By segment, its property arm Megaworld Corp. posted a lower income share of P5.4 billion, down 33%. Its total revenues in the first half fell by a quarter to P23.8 billion as the harsh lockdown pulled down its earnings from mall rents, real estate sales and hotel revenues.
Spirits producer Emperador, Inc. delivered a slightly improved profit contribution of P3.3 billion to its parent. The whiskey manufacturer saw flat earnings, which stood at P21.5 billion, as a liquor ban affected its local sales.
Travellers International Hotel Group, Inc., the operator of Resorts World Manila, incurred a P3.7-billion net loss in the period, especially when the quarantine put a temporary halt to its casino gaming operations. Its gross revenues took a 53% dive to P7.8 billion.
Golden Arches Development Corp., also known as McDonald’s Philippines, shed P709 million in the period with total revenues down by 37% to P9.7 billion. From only 38% of the fast-food giant’s stores operating at the start of the lockdown, 84% are trading by May, though, at limited capacity.
Diverse income streams lessened the pandemic’s impact on AGI’s group performance, the company said.
“We take comfort from the fact that we have managed to diversify our sources of income, either by type of products or by geographic contribution, and this has helped us mitigate the impact of this pandemic on our group performance,” Mr. Tan said.
AGI’s digital transformation aided its businesses during the strict community quarantine, according to Mr. Tan. He said that the company has to modify its product offerings and to acquire new skills to adapt to changes in consumer behavior.
On Friday, shares in AGI fell by 2.81% to close at P5.87 each. — Adam J. Ang