Business

Hit by COVID-19 lockdowns, AGI first half earnings tank

Bilyonaryo Andrew Tan-led Alliance Global Group, Inc. saw its net income fall 53% in the first half to P3.8 billion as the hard lockdown weighed heavily on most of its businesses.

Consolidated revenues dipped 26% to P61.4 billion on lower contributions from its property, gaming and fastfood units.

“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,” siaid Kevin L. Tan, CEO of AGI.

Property arm Megaworld reported a 33% drop in earnings to P5.4 billion as consolidated revenues sank 25% to P23.8 billion. The srict community quarantine sapped real estate sales and hotel revenues.

The group’s gaming subsidiary Travellers International Hotel Group was severely affected by the ongoing community quarantine, which put a temporary halt in casino gaming operations. Travellers International, the operator of Resorts World Manila, swung to a P3.7 billion loss from a net income of P845 million a year ago.

Gross gaming revenues were more than halved to P6.1 billion while its non-gaming revenues fell 44% to P1.7 billion due to limited hotel operations and MICE activities. Overall gross revenues plunged 53% to P7.8 billion.

GADC, the local franchise holder of global fastfood chain McDonalds, ended in the red in end-June with a net loss of P709 million, reversing the P751 million profit reported in the same period last year as lockdowns crippled sales by 37% to P9.7 billion.

Only 38% of the McDonald’s stores were operational in mid-March while activities were limited to take-outs, drive-thru, and delivery services as dining-in was not allowed. The level only improved to 84% by May with the easing of the restrictions, but still with limited services. GADC ended the quarter with 668 stores.

“This global health crisis has brought us new learnings. We have modified our product offerings and acquired new skills to adapt to the changes in consumer behavior. Likewise, our move to transform our operations under a digital strategy, an undertaking we have started only last year, has supported most of our businesses especially during the strictest period of the community quarantine,” Tan said.

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