Alliance Global Group Inc. (AGI), the investment holding firm of tycoon Andrew L. Tan, posted a 39 percent surge in net income to P19.2 billion in the first half of 2025, from P13.82 billion a year ago, driven in part by a one-off gain from the de consolidation of Golden Arches Development Corp. (GADC), the operator of McDonald’s Philippines.
The move, which reclassified GADC as an associate rather than a subsidiary, delivered a P3.4-billion gain. Adjusting for this and GADC-related items, AGI’s normalized net income still rose a strong 19 percent to P15.1 billion, signaling continued operational strength despite macroeconomic headwinds.
However, normalized revenue declined to P87.1 billion, down from last year’s P104 billion. In the second quarter alone, normalized revenue dropped 17 percent to P45.3 billion, while net income climbed 16 percent year-on-year to P5.3 billion.
AGI CEO Kevin Andrew L. Tan attributed the profit growth to increased residential and retail sales, office uptake, and a rebound in tourism-related activities. He emphasized ongoing cost-efficiency measures as key to preserving margins amid economic recovery.
Liquor unit Emperador Inc. posted flat Q2 earnings despite stronger brandy sales and continued international expansion. Whisky sales gained traction in the UK, Middle East, and Africa.
Meanwhile, Travelers International Hotel Group, AGI’s leisure arm, saw a 27 percent drop in attributable income to P315 million as gross revenues slipped 6 percent to P18.9 billion. Gaming revenue fell sharply by 31 percent to P7.5 billion, though non-gaming income remained resilient with hotel occupancy steady at 90 percent.
Travellers plans to intensify cost controls to improve operational efficiency moving forward.
The financial performance underscores AGI’s ability to maintain profitability through strategic asset shifts and cost discipline, even as top-line pressure persists across select segments.
