Alliance Global Group Inc., the holding firm of tycoon Andrew Tan, reported a 33 percent jump in net income for the first quarter of the year on the back of the improved performance of its business units.

In a statement, the company said net income rose to P1.97 billion in January to March 2009 from P1.48 billion in the same months last year.

Total revenues grew 6 percent to P8.86 billion from P8.40 billion last year.

Although suffering from lower sales, Alliance Global's property arm, Megaworld Corp., was still the key growth driver, accounting for 50 percent of revenues.

The consumer product division, composed of liquor maker Emperador distillers and fastfood chain McDonald's, contributed 41 percent of total revenues, while the balance came from interest and other income.

Megaworld, a leading developer of mid-income residential condominiums and office buildings, posted a slight decline in first-quarter net income from P1.03 billion to P1.02 billion as revenues dropped 5 percent to P4.45 billion from P4.67 billion. The company cited a difficult operating environment.

Emperador and McDonald's, meanwhile, registered combined revenues of P3.63 billion, a 6 percent increase from P3.43 billion in the first quarter of 2008.

"The company, recognizing the resilience of the Philippines, will continue to explore key investments in key high-growth industries in the country, particularly in the tourism sector," Alliance Global President Kingson Sian said.

Last year, Alliance Global entered into a joint venture with Star Cruises Limited, through its subsidiary, Travellers International Hotel Group Inc., to build the country's first integrated tourism city in Newport City located across from Terminal 3 of the Ninoy Aquino International Airport.

Star Cruises is part of the Malaysian conglomerate Berhad, and is the world's third largest cruise line operator.

Alliance Global said it will invest almost $500 million into the development of Newport City, which will host the all-suite Maxims Hotel, the five-star Marriott Hotel, and a budget hotel called Remington Hotel. The hotels will have a total capacity of 1,540 rooms.

Set for completion this year, Alliance Global said the entire hotel project will generate more than 5,000 jobs in the next 12 months.

Travellers will also build Bayshore City, another integrated tourism city in the Manila Bay area. It will host hotels, an entertainment complex, museums, and restaurants.

The project is expected to create over 100,000 jobs both in direct and indirect employment, the company said.