Philippine conglomerate Alliance Global Group is eyeing a 15-per-cent increase in profit by scaling up operations in gaming services and premium alcohol products to bank on rising tourism and consumer spending
A year after taking over from his father as chief executive officer, Alliance Global Group’s Kevin Tan says tourism and consumer spending in the Philippines will drive growth, as his conglomerate doubles capacity at its Manila gambling resorts.
Resorts World Manila, Alliance’s first gaming property, is expanding this year and the second resort will begin opening in 2021, Tan said.
Westside City, the group’s second casino complex in the capital, will also boost the share of revenue from gaming by almost half to 20 per cent over five years, he said.
The Resorts World Manila casino expansion, as well as a shift to premium products by Alliance’s distiller Emperador and a property boom in the country, has Tan expecting to increase profit by about 15 per cent a year at each subsidiary over the next five years, he said.
Consumer spending jumped more than 6 per cent in the first quarter in the Philippines, where it accounts for more than three quarters of an economy that is forecast to be one of Asia’s fastest growing this year.
“Fundamentally, the Philippine economy is quite strong and consumption is also quite high,” Tan said. “We will see a lot of our businesses thriving in this kind of environment.”
Tan’s group covers real estate, hotels, casinos and distilleries, including the local franchise of McDonald’s. Its unit Megaworld is the largest landlord for call centres in the Philippines, with more than 63 office towers, mostly in 24 mixed-use developments across the country.
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