Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) saw a 32 percent year-on-year decline in first-quarter net income attributable to P3 billion. It caused the eruption of the Taal volcano. And also, the start of local coronavirus infection battered its land, gaming, liquor, and fast-food businesses.
During the first quarter, AGI announced to the Philippine Stock Exchange on Tuesday. It combined revenues dropped by 7 percent to P38 billion.
Including earnings attributable to minority interest, the first-quarter income of AGI declined to P4 billion by 39 percent year-on-year.
“We started with twin challenges in 2020 and these change the way we live and do business today,” said Kevin Tan, chief executive of AGI, in a press release.
AGI has an interest in real estate through Megaworld Corp.; recreation, entertainment, and hospitality through Travellers International Hotel Group Inc.; drinks manufacturing through Emperador Inc.; fast-service restaurants through Golden Arches Development Corp. (GADC), popularly known as McDonald’s Philippines; and infrastructure through Infracorp.
The Report of a Net Loss
In the first quarter of this year Travellers International, owner, then the operator of Resorts World Manila (RWM) reported a net loss of P1 billion, reversing its modest net profit of P244 million the year before. Afterward, gross sales decreased in the first quarter by 19 percent year-on-year to P6.9 billion, representing the same fall in gross gaming sales (GGR) to P5.6 billion.
By mid-March, GGR refused to suspend casino gaming activities in accordance with the Collective quarantine. Non-gaming sales have decreased to P1.3 billion by 17 percent due to the pandemic. In addition, the restricted operations of its hotel activities.
Overall, GADC, AGI’s long-term alliance with the George Yang Group, which owns the exclusive franchise to run restaurants in the Philippines under the ‘McDonald’s’ name, ended the quarter with 669 outlets.
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