ALLIANCE Global Group, Inc. has allotted a P70-billion capital expenditure (capex) budget this year, up from P60 billion the prior year, to further expand its main business units, an official of the Andrew L. Tan-led firm said on Tuesday.
The bulk of the capex has been set aside for Megaworld Corp., which cornered P55 billion, as it plans to launch about P60 billion worth of projects in 2023.
“This should help generate target reservation sales of about P130 billion this year,” Alliance Global Vice-President for Investor Relations Caroline L. Kabigting said during the Philippine Stock Exchange’s Strengthening Access and Reach or STAR investor day.
The property developer also plans to launch three new townships this year, which are likely to be located in Luzon and Mindanao provinces.
The company is aiming to expand its office gross leasable area (GLA) by 207,200 square meters (sq.m.) and its mall GLA by 159,500 sq.m. from 2023 to 2026, and hotel keys by an additional 3,159 from this year until 2028, according to Ms. Kabigting.
Emperador, Inc. is allocated P7 billion, which will mainly be used to fund its international operations as it plans to expand its overseas market to account for 50% of its business by 2025 from the 35% reported in 2022.
“It envisions its international operation to contribute at least 50% to the business by 2025,” Ms. Kabigting said. “To hit this target, Emperador intends to double its branded single malt sales and achieve a high single-digit growth in brandy sales.”
Meanwhile, Travellers International Hotel Group, Inc. and Golden Arches Development Corp. will each receive P4 billion in capex for the year.
The Newport World Resorts operator plans to expand its gaming segment by rebuilding its premium mass operation to improve mass gross gaming revenues to 50% from the 40% recorded the prior year.
“It is also looking at further expanding its VIP business to increase junket operations and improve foot traffic at the [Newport Complex],” Ms. Kabigting said.
Additionally, Golden Arches will use its allocated capital spending budget to open 50 new McDonald’s stores throughout the country.
Alliance Global is the parent company of Megaworld, Travellers International Hotel Group, Emperador, and Golden Arches.
The company reported its attributable net income for 2022 rose by 6% to P25 billion from P23.8 billion previously reported on the back of recovering business segments due to the country’s reopening.
Alliance Global shares rose 0.15% or P0.02 to finish at P13.62 on Tuesday. — Adrian H. Halili
