AGI trims 2025 capex to ₱63B, allocates funds for real estate expansion

Alliance Global Group Inc., headed by tycoon Dr. Andrew Tan, plans to reduce its capital expenditures for 2025 to ₱63 billion, a decrease of 7.4% from last year.

AGI attributes this decision to cautious optimism amid economic challenges and will allocate the budget primarily towards expanding its real estate portfolio, which is its main income driver.

Megaworld Corporation will receive ₱50 billion for capital spending in 2025, a slight reduction from ₱51 billion last year, while Emperador Inc. will spend around ₱4 billion to support the expansion of its Invergordon Distillery in Scotland.

AGI reported a 12 percent decline in net income to ₱17.2 billion in 2024 compared to ₱19.6 billion in the previous year, primarily due to Emperador's performance and Travellers International Hotel Group Inc.'s lower gross gaming revenues.

Despite this, AGI saw a six percent increase in consolidated revenues to ₱223.6 billion for 2024, with key growth coming from Megaworld and Golden Arches Development Corporation.