In a recent announcement by Alliance Global Group (AGI), the performance of its subsidiary, Travellers International Hotel Group Inc, underscored a year of remarkable growth. The press release revealed significant financial achievements for the year 2023, highlighting robust increases in key revenue metrics across various sectors.
Revenue Surge and Financial Milestones
Travellers International Hotel Group Inc reported a noteworthy 7% surge in gross gaming revenues, reaching Php34.2 billion (US$600.1 million) compared to the previous year. This growth was supported by an 8% rise in EBITDA to Php8.2 billion (US$143.8 million), the highest recorded since 2012, despite escalating cost pressures. Notably, net income soared by an impressive 89% year-on-year to Php2.0 billion (US$35.1 million), reflecting sustained operational excellence and strategic management.
The broader AGI umbrella experienced a transformative period, achieving record-breaking consolidated revenues of Php211.2 billion (US$3.71 billion), marking a 15% increase year-on-year. Net income surged to Php30.3 billion (US$531.8 million), a remarkable 20% spike, with attributable net profit hitting Php19.6 billion (US$344.0 million), up by 21% from the previous year.
Driving Factors Behind Growth
AGI attributed its stellar performance to the resurgence in tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors, which fueled a 19% increase in net revenues to Php31.9 billion (US$559.5 million). This resurgence supported a notable 40% surge in hotel and other revenues to Php7.4 billion (US$129.8 million), signaling a recovery beyond pre-pandemic levels.
Business Segment
The success was broad-based, with AGI’s diverse business segments contributing to the outstanding results. Megaworld Corporation, specializing in real estate development, reported robust sales figures. Emperador Inc, engaged in spirits manufacturing, also showcased strong growth. Furthermore, Golden Arches Development Corporation (GADC), managing McDonald’s franchises in the Philippines, and Infracorp, focusing on infrastructure development, demonstrated resilience and expansion.
CEO Perspective
AGI’s CEO, Kevin Tan, emphasized the exceptional performance amid intense market competition and macroeconomic challenges. He highlighted that most businesses within the group surpassed pre-pandemic benchmarks, achieving unprecedented levels of sales, EBITDA, and net profit. Tan reiterated AGI’s commitment to pursuing aggressive business strategies and expansion plans across its diversified portfolio.
Outlook and Strategic Direction
Looking ahead, AGI remains optimistic, leveraging its robust financial position to drive further growth and capitalize on emerging opportunities. The strong performance in 2023 reinforces AGI’s strategic vision and underscores its resilience in navigating evolving market dynamics.
AGI’s exemplary financial results in 2023 underscore its strategic acumen and resilience across diverse business verticals. With a clear growth trajectory and an unwavering commitment to excellence, AGI continues to set new benchmarks in the industries it operates in, positioning itself as a leader in the Philippine market and beyond.