Stock News 2013: Property, gaming boost AGI profits in Q1

Casino logo (Photo credit: Wikipedia)

Alliance Global Group Inc. grew its first-quarter net profit by 18 percent year on year to P4.91 billion on higher earnings chalked up by its property development, gaming and beverage businesses.

Core net income attributable to AGI shareholders likewise increased by 21 percent to P3.58 billion from the level a year ago, the company disclosed to the Philippine Stock Exchange on Wednesday.

Property development arm Megaworld Corp. posted a 15-percent rise in first-quarter net profit to P1.8 billion.  Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to total revenue.

Leisure estate and gaming unit Travellers International Hotel Group—a partnership with the Genting group of Malaysia, which has made plans to go public—grew its first-quarter net profit by 16 percent year on year to P995 million. Travellers operates Resorts World Manila, the first integrated tourism estate in the country.

Emperador Distillers Inc. posted a 40-percent jump in first-quarter net profit to P1.4 billion.

Megaworld, Travellers and Emperador collectively contributed 84 percent of the conglomerate’s net profit.

“We believe the current macroeconomic conditions will contribute positively to our various businesses, from consumer and property to BPO and tourism—all growth drivers of the Philippine economy. These businesses will hit double-digit growth in revenues and net profits,” AGI chairman Tan said in a press statement.

Consolidated revenues went up by 25 percent to P30.39 billion in the first three months from the level a year ago.

Real estate arm Megaworld contributed around 34 percent to AGI’s net income and about 26 percent to its total revenue.

Megaworld’s three-month revenues stood at P8.1 billion, up 16 percent year on year. As an indicator of future growth, Megaworld and its subsidiaries also posted over P18 billion in reservation sales for the first quarter, higher than the P14 billion level in the same period last year, as the group reported brisk sales from the residential projects in its townships, particularly Newport City, McKinley West, McKinley Hill and Eastwood City.

Megaworld also cited strong leasing income from its BPO and retail portfolio.

http://business.inquirer.net/122247/metro-pacific-joins-msci-philippines-index-replaces-smc

http://pinoyfiq.com

Related articles

• Stock News 2013: PSBank posts record net profit of P2B in Q1 (investingstocksinphilippines.blogspot.com)
• PH stock exchange index dips as investors review gains (business.inquirer.net)
• Ayala, AGI post robust profits (manilastandardtoday.com)
• Financial IQ: Is it time to take profit on Philippine Stock Exchange (PSE)? (financialiqphilippines.blogspot.com)
• Megaworld township project in full swing (ctrebprofessionals.wordpress.com)
• PH stocks post modest rise through selective buying amid tame regional markets (business.inquirer.net)
• Fast Facts: Business empire of Andrew L. Tan (business.inquirer.net)
• Andrew Tan's Alliance Global reports healthy returns in 1Q of 2013 (bonusrepublic.com)
• Megaworld launches PH's first vineyard resort (rappler.com)

Stock News 2013: Philweb says corner-store gaming format to thrive alongside integrated casinos

Casino logo (Photo credit: Wikipedia)

Philweb Corp on Tuesday said it plans to expand its online gaming business to at least six countries across the Asia Pacific this year, even as it shrugged off competition coming from new integrated casinos.

"Asia in general is booming. We are looking at Thailand, Myanmar, Palau, Nepal, Sri Lanka and Mongolia as new areas of opportunity," Dennis Valdes, Philweb president told reporters on the sidelines of the company's stockholders' meeting.

Valdes expects majority of Philweb's future revenues to come from operations abroad. At present, the company's Asia Pacific business contributes nine percent.

Philweb recorded consolidated revenues of P1.5 billion in 2012, up 27 percent year-on-year.  Its net income rose 20 percent to P1.1 billion last year.

Philweb operates scratch card businesses in Cambodia, Timor Leste and Indonesia, as well as a sweepstakes business in Guam.

For its domestic operations, Valdes is bullish about the company's outlook despite the opening of new casinos in Metro Manila.

"We found that the gamers are very different. You see in our track records or revenue that there has been no effect on e-games. The reason for that is the Resorts World Manila and Solaire are in a very small section of the entire country, which is the city of Manila and Paranaque, while e-games is in every island," he said.

Resorts World Manila is a stand-alone casino across from the Ninoy Aquino International Airport Terminal 3, while Solaire is one of four integrated casino complexes rising on reclaimed land along Manila Bay in what is known as Philippine Amusement and Gaming Corp's (Pagcor) Entertainment City.

"We are the 7-11 of gaming. It's your corner convenience store," Valdes said, referring to the convenience store chain.

http://www.interaksyon.com/business/58486/philweb-says-corner-store-gaming-format-to-thrive-alongside-integrated-casinos

Related articles

• Solaire casino banks on high rollers (rappler.com)
• VIP baccarat on top in Macau; Analyst issues revenue update; APT signs new deal with Resorts World Manila (bonusrepublic.com)
• Regulate gambling (opinion.inquirer.net)
• Aquino opens mega casino in bid to join gaming elite (business.inquirer.net)
• Billionaire Razon's $1.2 Billion Casino Gets Lead (bloomberg.com)
• Mega casino opens in Parañaque's Bay City (business.inquirer.net)
• Manila Opens $1 Billion Casino (thediplomat.com)
• Tycoons gung-ho on casinos (manilastandardtoday.com)
• Manila the Next Las Vegas? (on.aol.com)

Stock News 2012: Alliance Global posts record P11.6-B profit

Casino logo (Photo credit: Wikipedia)
Alliance Global Group Inc. (AGI), the listed holding firm of real estate tycoon Andrew Tan, jacked up its net income by 68 percent last year to a record P11.6 billion on robust growth of its property business.

In a financial report submitted to the Philippine Stock Exchange, AGI said revenues hit an all-time high of P66.1 billion or an increase of 48.5 percent from the year before.

AGI chief financial officer Dina Inting said the company booked a non-recurring gain of P3.1 billion from the acquisition of a subsidiary during the period. The recurring portion alone translated into a 22 percent year-on-year profit growth.

As of end-December 2011, AGI’s total cash and cash resources stood at P49 billion.

Property arm Megaworld Corp. chipped in P28.6 billion or 40 percent of AGI’s total revenues. The amount is 39 percent higher than the 2010 level.

As a result, Megaworld reported a 60 percent growth in net income to P8.15 billion, boosted by a non- recurring gain of P2 billion from the sale of AGI shares of stock. Without this, its profit is still up 21 percent year on year.

Megaworld’s performance was backed by strong sales from its residential projects in Newport City, McKinley West and McKinley Hill, Eastwood City as well as strong leasing income from its BPO and retail portfolio.

Revenues and profits from the food and beverage, quick services restaurants and integrated tourism businesses likewise grew in line with targets, AGI said.

Food and beverage arm Emperador Distillers produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.

Golden Arches Development Corp. operates the quick service restaurant business under the McDonald’s brand while Travellers International Hotel Group, a joint venture with Genting Hong Kong, operates Resorts World Manila, the first integrated tourism estate in the country.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801327

Related articles

• Megaworld 2011 profit up 60% to P8.03B (business.inquirer.net)
• Megaworld nets P8B in 2011 (business.inquirer.net)
• Megaworld sets P25B capital spending this year (business.inquirer.net)
• PSE index retreats from record highs (business.inquirer.net)
• Alliance Global reports 2011 net profit of P14.7 B (business.inquirer.net)
• Procter & Gamble 3Q net income slips (seattlepi.com)
• Amazon announces 35% drop in profits (bizjournals.com)

Stock News 2011: AGI to invest $1.35B more for Metro Manila tourism

Image via Wikipedia
Alliance Global Group, Inc. (AGI) is expecting to invest an additional $1.35 billion over the next five years for its two hotel and gaming complexes in Metro Manila to boost its capacity to about 5,600 rooms from the current 1,226 rooms.

“At this point, we have invested maybe $650 million in Resorts World Manila. Within the next five years it will grow to $1 billion,” said AGI president Kingson Sian in an interview after the firm’s annual stockholders’ meeting.

He added that, ‘if we're going to spend a billion in RW Manila, for sure, minimum, its a billion on the other side (Pagcor Entertainment City) because its a much bigger site.’

“We're quite positive and excited about the prospects of tourism. There's a lot of us investing and that’s what you need. You need to create scale, you need to create diversity,” Sian explained.

He noted that most of their capital expenditures will be used to build non-gaming facilities such as hotels, conference centers, more high-end retail space.

“We're creating more capacity because we need more room to attract more tourist to come,” Sian said adding that they will build two more five-star hotels in RW Manila, two budget hotels and a six star hotel which will be an extension of Maxims. They will also expand the Marriott Hotel by 100 rooms.

For Resorts World Bayshore in Pagcor City, Sian said they will also prioritize the construction of hotels once their masterplan is completed.

http://mb.com.ph/articles/335072/agi-invest-135b-more-metro-manila-tourism-projects

Related articles

• Packer, Lawrence Ho May Invest $1 Billion in Manila Casino (businessweek.com)