AGI hiking capital spending to P40B in 2013
MANILA, Philippines - Alliance Global Group Inc. (AGI), a listed consumer and property conglomerate, is hiking capital spending to over P40 billion next year to expand its businesses and help sustain double-digit profit growth, Chairman Andrew Tan said late on Monday.
Tan, who said in March that spending in 2012 would hit P35 billion, said the firm remains bullish on the country’s growth prospects. Its businesses, which include developer Megaworld Corp., the Resorts World Manila casino complex, McDonald’s and Emperador brandy, cater either to the country’s growing tourism or consumer segments.
“We are seeing good growth in our businesses next year,” Tan told reporters at the sidelines of the Philippine Stock Exchange Bell Awards in Makati City. “I think we will have double-digit [growth] in net income.”
Investments in the gaming sector, in particular, are expected to ramp up as AGI, together with partner Genting Hong Kong, is expected to launch in 2013 the $1.2-billion Resorts World Bayshore casino and hotel project within the Entertainment City gaming complex in reclaimed Manila Bay.
That project is scheduled to open in 2016 and will help the conglomerate triple its hotel- room capacity to 5,000 rooms in five to seven years from the current 1,570 rooms, a recent filing showed.
Tan said spending would also be allocated to “tourism, real-estate and consumer products.”
AGI reported last month that core net income attributable to owners of the firm rose 33 percent to P9 billion.
Tan said on Monday the company expects to end the year with a core net income of above P10 billion.
AGI shares, which have recently pared gains from recent highs, closed Tuesday’s session up 2.52 percent to P16.30 per share. The stock is up by more than half since the start of the year, outperforming the Philippine benchmark index, which has gained over 30 percent.