SM Prime Holdings builds income by 15 per cent
Second-quarter net income grew 15 per cent to PHP7.79 billion (US$153.7 million) for integrated property company SM Prime Holdings.
This took its first half net income to PHP14.39 billion, 14 per cent up from PHP12.59 billion for the same period last year.
Consolidated revenues grew by 10 per cent to PHP43.25 billion while the overall operating income rose 13 per cent to PHP20.11 billion.
“Our performance in the first half of the year reflects more balanced revenue and income streams from our various businesses, including the growing contribution from our provincial sector,” says SM Prime president Jeffrey Lim.
“We are happy to report that our investments in the provinces are now bearing fruit, particularly in mall business given that this accounts for more than half of our Philippine malls portfolio.
Mall revenues contributed 60 per cent of SM Prime’s consolidated revenues, up by 10 per cent for the first half to PHP25.68 billion.
Mall rentals also rose 10 per cent, to PHP21.75 billion, driven by extra 1.1 million sqm gross floor area (GFA) of retail spaces from new malls and expansions between 2015 and this year, as well as 7 per cent same-mall sales growth.
Cinema and event ticket sales were almost flat at PHP2.35 billion because of fewer blockbuster movies. Revenues from amusement and merchandise sales, however, rose by 26 per cent to PHP1.58 billion.
Consolidated mall operating income grew by 10 per cent to PHP14.18 billion while operating margins were stable at 55 per cent.
To date, SM Prime has 63 shopping malls in the Philippines and seven in China with a GFA of 7.8 million sqm and 1.3 million sqm respectively. Malls scheduled to open include SM City Puerto Princesa in Palawan.