Alliance Global Group, the investment company led by Philippine billionaire Andrew Tan, has unveiled its ambitious plans to expand its casino resort operations beyond the bustling city of Manila.

During the company’s annual meeting, CEO Kevin Andrew Tan revealed that the company is actively scouting potential expansion sites in key tourism hubs across the Philippines, demonstrating its commitment to broadening its reach in the country’s thriving tourism sector.

New opportunities in the Philippines

This strategic move comes as Alliance Global aims to capitalize on the recent developments in the regional gambling landscape, including China’s crackdown on Macau, which has created uncertainty in the once-dominant gambling hub. The company believes that these developments present new opportunities for them to establish a stronger presence in the Philippine gaming industry.

In addition, the Philippines government is considering the sale of state-owned casinos, further signalling a broader transformation in the gaming sector. Alliance Global intends to position itself strategically to leverage from these changes and strengthen its foothold in the market.

Travellers International Hotel, the gaming venture belonging to Alliance Global, showcased promising financial results, marking a return to profitability in 2022 with a net income of 1.1 billion pesos ($19.6 million). The company experienced record-breaking gross gaming revenue and witnessed a steady recovery in non-gaming earnings.

To fuel its ongoing expansion efforts, Alliance Global has allocated approximately 4 billion pesos from this year’s planned capital expenditure of 70 billion pesos to enhance the Newport World Resorts casino complex operated by Travellers. Moreover, the recent acquisition of its casino-venture partner, Genting Group, positions Alliance Global for further growth and success in the industry.

Travellers aims to increase the contribution of premium mass-market gamblers to half of its gross gaming revenue, a strategic move to diversify its customer base and capture a larger market share. The company also intends to expand its VIP junket operations, which have already surpassed pre-pandemic revenue levels in 2022, further bolstering its financial performance.

Optimistic growth trajectory

Despite the positive developments, shares of Alliance Global experienced a slight dip of 1.5 percent, marking the sixth consecutive daily loss. However, the company remains optimistic about its long-term prospects and growth trajectory.

During the annual meeting, other important updates were also discussed. Megaworld, the group’s property arm and a significant contributor to net income, has implemented effective risk management strategies to mitigate the impact of currency volatility arising from foreign exchange exposure.

Alliance Global has demonstrated resilience to higher interest rates, with only a small portion of its borrowings subject to floating interest rates. This positions the company favourably amid changing market conditions and ensures stability in its financial operations.

While approximately 30 percent of Megaworld’s business-process management and outsourcing office tenants continue to operate under work-from-home arrangements, the company has witnessed a growing demand for office space from the information technology and BPO sectors. Megaworld’s impressive 90 percent office occupancy rate attests to the sustained demand for premium office spaces.

New markets

Emperador, the distillery venture of Alliance Global, has ambitious plans for growth as well. A significant portion of its 7 billion peso capital expenditure for this year, amounting to 6 billion pesos, will be allocated to expanding its whiskey facility and infrastructure in Scotland. This strategic move underscores Emperador’s commitment to enhancing its whiskey business and exploring new avenues for expansion.

Alliance Global’s restaurant venture, which holds the Philippine franchise of the renowned fast-food chain McDonald’s, is gearing up for an aggressive expansion phase this year. With a focus on faster-growing areas outside of Metro Manila, the company aims to tap into new markets and meet the evolving demands of consumers across the Philippines.

As Alliance Global pushes forward with its multifaceted expansion strategy, it remains steadfast in its pursuit of growth opportunities across various sectors, leveraging its diverse portfolio of businesses to achieve further expansion.

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