Alliance Global Group Inc. (AGI), the holding firm of businessman Andrew Tan, on Monday said its income last year plunged 62 percent to P10.3 billion from the previous P27.1 billion, as restrictions affected most of its businesses.
Revenues fell 28 percent to P129 billion from the previous year’s P180 billion.
“This pandemic really taught us so many lessons as a Group and we see this as a perfect opportunity to strengthen our resolve to have a more diversified portfolio that could provide a balanced stream of earnings in a post-pandemic scenario,” Kevin Andrew L. Tan, the company’s CEO, said. During the strict lockdown last year, Emperador Inc. performed well thanks to its global liquor operations, particularly for its brandy and whisky products in Europe, Asia, North America, Latin America and Africa. Overseas sales overtook the low domestic sales due to the liquor bans imposed during the quarantine.
Liquor sales of Emperador grew 42 percent during the fourth quarter compared to the previous quarter, the company said.
AGI also fully accelerated its digitalization strategy with investments in Agile Digital Ventures, a wholly-owned subsidiary of Megaworld Corp. Its companies also focused on digital innovations and developed various platforms for their various operations, such as iFAE for its residential customers, e-concierge for its hotels, McDelivery PH App for McDonalds, Boozy.ph for liquor delivery, RWM mobile App for Resorts World Manila and Pick.A.Roo as an all-in-one delivery App, mainly to support the retail partners.
As a result, sales of McDonald’s Philippines jumped 36 percent in the fourth quarter compared with the previous quarter; while gaming revenues of Resorts World Manila also grew 33 percent and real estate sales of Megaworld was up 22 percent in the last quarter.
“Innovation, especially on digital technology, will remain to be at the core of our various companies’ business operations. We will continue to use technology to give our Group an added advantage as we embrace the New Reality,” Tan said.
Travellers International Hotel Group Inc., which handles the hotel and gambling assets, managed to post earnings before interest, taxes, depreciation and amortization of P425 million even with the limited operations of Resorts World Manila during most part of the year due to the community restrictions.
Net gaming revenues in 2020 stood at P9.4 billion, while non-gaming revenues amounted to P2.8 billion. Also during the year, Travellers upgraded its Garden Wing casino, to complement its Grand Wing casino, giving RWM the much-needed capacity under the New Normal.
Golden Arches Development Corp., the owner of the McDonald’s brand in the country, in which Tan owns 49 percent but still is operated by the Yang family, registered sales of P19.8 billion in 2020.
The company closed the year with 655 McDonald’s stores.
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