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New mall openings drive SM Prime’s income growth to P16.62B in H1

(Source: Business Mirror | August 6, 2018)

Shopping mall operator SM Prime Holdings Inc. on Monday said its net income grew 16 percent during the first half of the year ending June, mainly as a result of new mall openings during the past few months.

The company said first-half earnings grew to P16.62 billion, from P14.39 billion last year. Consolidated revenues rose 15 percent to P49.77 billion, from P43.25 billion last year.

“SM Prime’s expansion projects in various progressive provincial areas in the Philippines, as well as presence in Metro Manila, allowed the company to maintain double-digit growth in all of our businesses,” SM Prime President Jeffrey C. Lim said.

“We intend to deliver more integrated developments in the coming years anchored by lifestyle malls, luxurious yet affordable residences and other complementary amenities across the country. We believe that synergy among our businesses is key to sustaining our revenue and income growths, while also improving the lives of the communities we serve,” he said.

Consolidated mall revenues rose by 12 percent to P28.71 billion, from P25.68 billion last year. This accounts for 58 percent of the company’s consolidated revenues.

Rental revenues improved by 13 percent to P24.49 billion, from P21.75 billion, driven by the 8-percent same-mall-sales growth, as well as by the increasing contribution from newly opened and expanded malls.

Cinema and event ticket sales were up by 10 percent, recording P2.59 billion, from P2.35 billion last year.

Other revenues, including leisure, entertainment and merchandise sales contributed P1.64 billion, a 4-percent increase from the same period last year.

SM Prime has 77 malls, 70 in the Philippines and seven in China.

The company has opened malls in Imus, Cavite; Urdaneta, Pangasinan; and Telabastagan, Pampanga, in the first half of the year.

The company said it will open two more malls this year, one in Legazpi, Albay and one in Ormoc, Leyte. Its residential group SM Development Corp. accounted for 34 percent of consolidated revenues. It said revenues rose 23 percent to P17.05 billion, from P13.91 billion last year, as high-rise housing projects in Metro Manila launched from 2015 to 2017 continue to drive the revenue growth of this segment.

Reservation sales reached P34.45 billion, up from P27.55 billion last year. This translates to a 7-percent increase in unit sales to 9,319 units from 8,699 units.

SM Prime’s hotels and convention centers and the commercial properties group posted a revenue growth of 10 percent to P4.11 billion, from P3.74 billion last year.

 

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