SM Prime income up 14%

MANILA, Philippines - Shopping mall giant SM Prime Holdings Inc. said yesterday its net income grew 14 percent in the nine months ending September this year to P6.41 billion.

Consolidated revenues amounted to P19.27 billion, up 13 percent, while earnings before interest, taxes, depreciation and amortization (EBITDA) improved 13 percent to P13.02 billion for an EBITDA margin of 68 percent.

In the third quarter alone, SM Prime reported a 15 percent growth in profit to P2.14 billion from P1.86 billion in the same period in 2010. Revenues likewise increased 15 percent to P6.56 billion while EBITDA rose 14 percent to P4.34 billion.

“The notable results delivered by SM Prime so far this year give us greater confidence in attaining our full-year target for both the Philippines and China, especially since we are moving towards the holiday season. We will continue to offer good value products and services to our customers, and improve on areas that will give an even more enhanced shopping and entertainment experience to them,” SM Prime president Hans T. Sy said.

The steady growth in income was attributed to new store openings and further expansion, which added 289,000 square meters (sqm) in net leasable space. The four new SM malls that opened last year are SM City Calamba, SM City Novaliches, SM City Tarlac and SM City San Pablo.

In addition, same-store rental income climbed seven percent.

For the first nine months of the year, SM Prime’s consolidated rental revenues rose 15 percent to P16.45 billion, accounting for 85 percent of total. The increase came from both new space and same-store rental growth.

Cinema ticket sales meanwhile, amounted to P2.07 billion, a year earlier.

On the other hand, operating expenses reached P9.12 billion, 12 percent higher than the year earlier figure.

Income from operations likewise increased 14 percent to P10.14 billion, up 14 percent from P8.89 billion in 2010.

Earlier this year, SM Prime inaugurated SM City Masinag in Antipolo City and SM City Suzhou in China. For the rest of 2011, the company is slated to open SM City San Fernando in Pampanga, SM City Olongapo in Zambales, and SM Marketmall in Dasmariñas, Cavite.