SM Prime profit up 12% to P7.9 B in 2010

MANILA, Philippines - Shopping mall giant SM Prime Holdings Inc. said its consolidated net income reached P7.9 billion last year, a 12-percent growth over the P7 billion reported in 2009.

During the period, revenues rose 16 percent to P23.7 billion while earnings before interest, taxes, depreciation and amortization (EBITDA) grew 14 percent to P15.9 billion, for an EBITDA margin of 67 percent.

These results include the operations of the three SM malls in China,located in Xiamen and Jinjiang in Southern China, and Chengdu in Central China. 

The company’s China operations posted a robust 36- percent growth in combined gross revenues on the strength of China’s economy, an improvement in the malls’ occupancy rates, and the expansion of SM City Xiamen through its high-end Lifestyle Center.

SM Prime also attributed its positive performance to the strong economic environment and the sustained high level of personal consumption expenditure driven mainly by income earned by Filipinos abroad and election spending in the first half of the year.

Hans Sy, president of SM Prime, said “expansion targets were met and plans were executed well,” allowing the company to enter a new decade full of bigger goals and greater optimism supported by positive economic prospects and a strong and experienced organization.

Consolidated rental revenues, which accounted for 84 percent of total revenue, reached P20 billion for a 13 percent increase year-on-year. The increase came from both new space and the same store rental growth of six percent.

Among the malls that opened last year were SM City Tarlac, SM City San Pablo, SM City Calamba and SM City Novaliches. Collectively, these new malls added 276,800 square meters to the company’s total gross floor area (GFA) and currently register an average occupancy rate of 94 percent.

Cinema ticket sales amounted to P2.8 billion, 32 percent higher than the P2.1 billion recorded the previous year. “The wider deployment and use of digital movie technology, the new IMAX Theater in SM North EDSA, and the renovation of SM cinemas increased SM Prime’s market share of local and foreign movies,” SM Prime said.

SM Prime is looking to sustain its positive growth with the opening of three malls this year -SM City Masinag in Antipolo City, SM City San Fernando in Pampanga and SM City Olongapo in Zambales.

SM Prime is also scheduled to expand two of its existing malls , SM City Davao in Southern Mindanao and SM City Dasmariñas in Cavite.

By the end of 2011, SM Prime will have 47 malls in the Philippines and in China with an estimated combined GFA of 5.7 million sqm.