SM Prime results boosted by strong economy
SM Prime boosted net profit by 15 per cent to PHP4.9 billion in third quarter of 2016.
Overall revenue rose by 14 per cent to PHP18.5 billion.
The SM Prime results show year-to-date net income rose 13 per cent year-on-year to PHP17.5 billion, on sales up by 11 per cent to PHP57.8 billion.
The company says the improved performance was down to sustained growth of its key rental operations and real estate sales businesses.
“SM Prime sustained its overall performance as it benefited from the continued growth of the economy,” said SM Prime president Jeffrey Lim. “The synergy and contribution of our business units are reflected in our strong results. We expect SM Prime’s success to continue over the medium-term as economic growth spread to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces.”
Overall Philippine mall revenues increased by 9 per cent to PHP32.1 billion. Rentals posted an 11 per cent growth to PHP26.9 billion, driven by a 7 per cent growth in same-mall-sales, as well as new retail spaces of 1 million sqm in gross floor area (GFA) that were added in the past two years.
Cinema and event ticket sales are at PHP3.44 billion, slightly higher from last year’s performance of PHP3.4 billion. Revenues generated from amusements and merchandise sales posted the same amount of PHP1.8 billon from same period last year. Operating income increased by 10 per cent to PHP17.8 billion from PHP16.1 billion in the same period last year as margins slightly improved to 55.3 per cent from 54.9 per cent.
Meanwhile, SM Prime’s China mall revenues rose by 5 per cent to PHP3.1 billion, while its operating income grew by 6 per cent to PHP1.5 billion, maintaining the previous year’s operating income margin of 49 per cent.
Currently, SM Prime has 58 malls in the Philippines and six in China with a GFA of 8.5 million sqm. SM Prime is scheduled to open SM East Ortigas this December while SM City Tianjin will open in phases towards the end of the year. By the end of 2016, SM Prime will have a combined GFA of almost 9 million sqm.