Alliance Global Group Inc. (AGI), the conglomerate led by tycoon Andrew Tan, leveraged strong domestic spending to lift its first-half net income to P19.2 billion, a 39 percent increase from last year.

In a stock exchange report on Thursday, the company said the surge was fueled by robust performances in real estate and tourism, while group revenues hit P100.9 billion, boosted by one-off gains from the deconsolidation of its quick-service restaurant unit, Golden Arches Development Corp. (GADC).

Earlier this year, GADC, in which AGI retains a 49 percent stake, was deconsolidated and is now treated as an associate, generating one-time gains of P3.4 billion.

Excluding these items, normalized net income reached P15.1 billion, up 19 percent year-on-year, while normalized consolidated revenues were P87.1 billion, a 3 percent increase. Attributable net profit rose 23 percent to P10.1 billion.

Strong results

“AGI delivered strong results in the first half of the year, benefitting from a buoyant domestic economy despite ongoing global uncertainty. During this period, our Group took advantage of pockets of opportunities in the market to boost our residential and retail sales, as well as our office take-up,” AGI president and CEO Kevin L. Tan said.

“By managing our costs, we hope to enhance our operating leverage to ensure a more robust growth in profit as the economy further recovers,” Tan added.

Megaworld, AGI’s top-performing unit, led first-half results with revenue up 10 percent to P43.1 billion.

Real estate sales rose 9 percent to P27.1 billion, supported by strong residential demand and steady project completions. Sales reservations totaled P54.7 billion, while project launches reached P10.4 billion.