SM Prime's consolidated income grows 7% to P1.7 B

May 6, 2009 3:08 am 

MANILA, May 5 —Consolidated income of SM Prime Holdings, Inc. (SM Prime) reached P1.7 billion in the first quarter this year, up seven percent from P1.6 billion last year.

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, SM Prime said total revenues jumped 18 percent to P4.7 billion in the first quarter, while its earnings before interest, taxes, depreciation and amortization (EBITDA) grew 14 percent to P3.3 billion, for an EBITDA margin of 69 percent.

SM Prime’s first quarter results included the operations of the three SM malls in China, following their acquisition in early 2008. The SM China malls are located in the cities of Xiamen and Jinjiang in Southern China, and Chengdu in Central China.

“We are very pleased by the resilience that our malls are experiencing despite earlier prognosis of a more challenging economic environment. The SM malls continue to enjoy high foot traffic and healthy sales growth. As we continue to focus on offering quality and value for money products and services, we also closely monitor the effects of the global financial crisis on local demand, especially on consumer spending. We are hopeful that moving forward it will have much less of an impact in Asia,” said SM Prime president Hans T. Sy.

Rental fees still accounted for the largest share of SM Prime’s consolidated revenues, reaching P4.1 billion, for a year-on-year growth of 19 percent.

The company attributed the growth mainly to new malls and mall expansions in 2008.

The new malls opened last year were SM City Marikina, SM City Rosales, and SM City Baliwag. In addition, mall expansions were completed in The Annex at SM City North EDSA, and The Atrium at SM Megamall.

The new malls and expansions in 2008 added approximately 353,000 square meters to the company’s total gross floor area.

SM Prime also reported that cinema ticket sales during the quarter improved by eight percent due to an increase in the number of local blockbuster movies such as “You Changed My Life”, “Ang Tanging Ina N’yong Lahat”, and “When I Met You”, among others.

Operating expenses for the period rose 23 percent to P2.2 billion, from P1.8 billion in 2008, largely because of the new and expanded malls.

Income from operations grew 14 percent to P2.5 billion in the first quarter this year from P2.2 billion in 2008.

SM Prime inaugurated SM City Naga in Camarines Sur recently. It is the company’s first mall in the Bicol region and also its first to be opened this year.

SM City Naga brings to 34 the total number of SM Prime malls in the Philippines, with a total ground floor area of 4.4 million square meter.

For the rest of 2009, the company will open SM City Rosario in Cavite, and SM City Pamplona in Las Piñas. It will also unveil the Sky Garden, which is an innovative expansion of SM City North EDSA, and complete the expansion of SM City Rosales in Pangasinan.

By the end of this year, SM Prime expects to have 36 malls in the country, with an estimated gross floor area of 4.9 million square meter. (PNA)

RMA/PFN

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