By: Victor V. Saulon, Business World
Mall revenues from the country’s biggest mall operator SM Prime Holdings went up by 8.2% to P31.07 billion during the second quarter.
This is accounted for 55% of the company’s consolidated revenues.
In total, SM Prime Holdings, Inc. reported a 16.4% increase in net income during the same period to P10.50 billion from P9.02 billion a year ago as it cited the “stable economy” as helping the Sy-led firm sustain its profit growth so far this year.
In a disclosure to the stock exchange, SM Prime said consolidated revenues during the quarter had expanded to P30.51 billion, higher by 15.5% from P26.42 billion previously.
In the first six months of the year, the firm recorded a 16.1% growth in net income to P19.3 billion from P16.62 billion in the same period last year.
“The country’s stable economy has helped SM Prime maintain its growth in all core businesses for the first half of 2019. We are optimistic to sustain this growth moving forward as we launch new projects with the goal of providing more integrated property developments across the Philippines,” said SM Prime President Jeffrey C. Lim in a statement.
Consolidated revenues during the first six months rose by 14.6% to P57.05 billion from P49.77 billion in the same period last year, while overall operating income increased by 17.4% to P27.42 billion.
Rental revenues increased by 7.1% to P26.22 billion, driven by the 7% “same-mall-sales growth as well as the increasing contribution from newly opened and expanded malls in 2018.”
Cinema and event ticket sales rose by 9% to P2.81 billion, which the company attributed to summer blockbuster movies such as Avengers: Endgame and Captain Marvel shown between April and June.
Other revenues, including leisure, entertainment and merchandise sales, climbed by 24% to P2.03 billion.
Mall operating income was up by 10% to P17.45 billion, boosting operating income margin to 56% from 55% a year ago.
SM Prime has 72 malls in the country and seven malls in China for a combined total gross floor area (GFA) of 9.3 million square meters (sq.m.) as of June 2019. It is set to open SM Center Dagupan, SM City Olongapo Central, SM City Butuan and SM Mindpro Citimall in Zamboanga in the second half.
The article is first published HERE.