Alliance Global Reports 3% Profit Growth to ₱16 Billion in First Half

Diversified Revenue Streams Drive Growth

Alliance Global Group Inc. recorded net income of ₱16 billion for the first half of 2026, marking a 3% increase from ₱15.6 billion in the same period last year. The figure excludes one-time gains from the 2025 deconsolidation of Golden Arches Development Corp., providing a clearer view of operating performance across the conglomerate's core businesses.

Consolidated revenues reached nearly ₱90 billion, also up 3% year-on-year when adjusted for the deconsolidation. The growth came primarily from property leasing, spirits sales, and the non-VIP gaming segment, alongside non-gaming revenue from its integrated resort operations.

Kevin Tan, president and chief executive of Alliance Global, attributed the performance to the group's portfolio mix. The conglomerate's structure spans real estate development and leasing through Megaworld, gaming and hospitality via Travellers International, and spirits production under Emperador.

Gaming Pivot Pays Off

Travellers International, which operates Newport World Resorts, delivered the most notable earnings improvement within the group. Attributable net income nearly doubled to ₱568 million, driven by cost efficiencies and a shift in revenue composition toward higher-margin offerings.

Net revenue for the gaming and hospitality arm stood at ₱15.2 billion. The non-VIP gaming segment and non-gaming amenities, including hotels, dining, and entertainment, more than compensated for declining VIP volumes. The industry-wide move away from VIP play has pressured operators reliant on high-roller segments, but Travellers International's diversified revenue base cushioned the impact.

The pivot reflects a broader trend across Southeast Asian gaming markets, where operators are recalibrating business models to focus on mass-market players and integrated resort experiences rather than volatile VIP revenue.

Property and Spirits Contribute

Megaworld, the group's property development and leasing flagship, posted net income of ₱12.7 billion, up 5% from the prior year. Consolidated revenues reached ₱44.2 billion, with recurring income from office and retail leases providing stability amid slower residential sales velocity in Metro Manila and key provincial townships.

The shift toward leasing income aligns with Alliance Global's strategy to build predictable cash flows. Office and mall rental revenues are less sensitive to macroeconomic volatility than pre-selling residential units, which depend on buyer sentiment and mortgage availability.

Emperador, the world's largest brandy producer and a major Scotch whisky player, contributed ₱3.7 billion in net income. Consolidated revenues for the spirits business grew 5% to ₱29.6 billion, with both brandy and whisky segments posting gains. Management indicated the company is positioning for a multi-year profitability trajectory as global spirits demand normalizes following post-pandemic inventory corrections.

Balance Sheet and Outlook

Alliance Global entered the second half with what management described as real momentum in its highest-quality businesses and a balance sheet structured to support growth initiatives. The group has historically maintained conservative leverage ratios, providing flexibility to pursue acquisitions or capital expenditures without straining liquidity.

Tan emphasized that diversified, high-quality earnings enable the conglomerate to navigate economic cycles. The strategy contrasts with single-sector plays that face amplified risk during downturns in their respective industries.

The Philippine economy grew 5.8% in the first quarter of 2026, below the government's 6-7% target range, as elevated interest rates and inflation weighed on consumer spending and investment. Alliance Global's performance suggests its mix of defensive assets, such as leasing income, and discretionary exposure through gaming and spirits, offers resilience in a mixed macroeconomic environment.

The conglomerate's results also reflect broader capital flows in Southeast Asia, where investors continue to favor businesses with recurring revenue models and exposure to domestic consumption rather than export-dependent sectors facing trade policy uncertainty.