Alliance Global Group Inc. is allocating P60 billion for 2022 capital expenditures, up 33 percent from last year’s level as it prepares for further improvement in economic activity.
“We are a conglomerate in motion. We believe that with the sectors we are in, we will very much benefit from pent-up spending resulting from the further reopening of the economy,” said AGI chief executive Kevin Tan.
AGI said property unit Megaworld Corp. would receive about P50 billion in capex for increased development and investment activities. AGI’s real estate arm, which recorded a 36-percent year-on-year jump in 2021 net income, plans to offer to the market 14 new projects this year valued at P30 billion.
The company plans to launch four townships this year covering 500 hectares of land in Metro Manila, Calabarzon and Mindanao.
Another P4 billion will be allocated for Travellers International’s ongoing expansion projects, mainly in leisure and entertainment as eased quarantine restrictions brought its gross gaming revenues to a 26 percent year-on-year increase.
AGI said net income attributable to parent slid by 3 percent to P8.2 billion, as the comparative figure included one-time gain of P5.4 billion booked by its entertainment and leisure unit. Excluding such one-off item, AGI’s first-half net income increased 41 percent year-on-year.
AGI said in a disclosure to the stock exchange first-half consolidated revenues rose by 16 percent year-on-year to P82.6 billion.
“AGI’s strong interim performance mirrors the quarterly rise in economic activity, helped by pent-up consumer spending as mobility continues to improve. This has been felt across all our business segments which have performed on par, if not ahead, of their pre-pandemic levels,” Tan said.
Tan said while the company was expecting to face challenges such as higher input costs, supply chain issues, volatile foreign exchange rate and rising interest rates, the group’s focused strategies, creativity of offerings and strong market positioning would enable it sustain growth.
Megaworld Corp. posted first-half net income of P5.9 billion, up 18 percent from a year ago. Liquor unit Emperador Inc.’s first-half profit inched up 3 percent to P5.2 billion from P5.1 billion.
Golden Arches Development Corp., the local franchise holder for fast-food giant McDonald’s, booked first-half net income of P768 million, a 15-fold increase from a year ago.