Mediaboss Marketing

By: Krista Angela M. Montealegre, InterAksyon.com June 28, 2012 2:52 PM

InterAksyon.com The online news portal of TV5

MANILA - After returning to profitability last year, Global-Estate Resorts Inc. expects the momentum to continue in the next three years anchored on the development of integrated tourism estates and the completion of existing projects.

On the sidelines of the company's annual stockholders meeting, Alain Sebastian, GERI assistant vice president for marketing, said earnings of Alliance Global Group Inc.s tourism arm may hit the P1-billion mark in the next two to three years.

For this year, the firm targets to grow its net profit by 20 percent to P264 million from P220 million in 2011, said GERI president Ferdinand Santos.

New project launches, the completion of developments and recurring income from its hotel operations will fuel revenue growth and support the attainment of its earnings guidance, said Santos.

He said reservation sales may reach P6 billion by yearend, up from P1.1 billion in 2011. In the first five months of the year, reservation sales stood at P3 billion.

"With launches of new projects, with the level of reservation sales we mentioned and the expected completion based on timetable, we feel we may really hit that income level," said Santos.

GERI set its capital expenditure budget at P2.5 billion for project development, Sebastian said. The capex will be funded by a combination of internally generated cash and debt.

Riding on the improving tourism numbers of the country, GERI unveiled plans for its flagship projects Boracay Newcoast and Twin Lakes in Tagaytay as well as its Sta. Barbara Heights development in Iloilo.

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GERI eyes P1-billion profit in 2-3 years