SHOPPING mall operator SM Prime Holdings Inc. said its net income jumped 16 percent during the first half of the year to P19.3 billion from last year’s P16.62 billion on the continued expansion of its malls in the country.
Consolidated revenues rose 15 percent to P57.05 billion from P49.77 billion last year, while overall operating income went up 17 percent to P27.42 billion, from P23.36 billion in the previous year.
For the second quarter alone, profits also rose 16 percent to P10.50 billion from P9.02 billion last year, while revenues grew at the same pace to P30.51 billion from P26.42 billion.
“The country’s stable economy has helped SM Prime maintain its growth in all core businesses for the first half of 2019. We are optimistic to sustain this growth moving forward as we launch new projects with the goal of providing more integrated property developments across the Philippines,” SM Prime President Jeffrey C. Lim said.
SM Prime’s consolidated mall revenues increased by 8 percent to P31.07 billion during the six months of the year ending June. This accounts for 55 percent of the company’s consolidated revenues.
Rental revenues went up to P26.22 billion from P24.49 billion in the previous year, driven by the 7-percent same-mall-sales growth, as well as the increasing contribution from newly opened and expanded malls in 2018.
Cinema and event ticket sales reached P2.81 billion from P2.59 billion, a 9-percent increase from the same period last year.
Meanwhile, other revenues, which include leisure, entertainment and merchandise sales, jumped by 24 percent to P2.03 billion from P1.64 billion of last year.
Mall operating income rose 10 percent to P17.45 billion from P15.90 billion, translating to higher operating income margin of 56 percent from 55 percent last year.
SM Prime has 72 malls in the Philippines and seven malls in China with a total gross floor area of 9.3 million square meters as of June.
For the second half of the year, SM Prime will open malls in Dagupan, another one in Olongapo, Butuan and Mindpro Citimall in Zamboanga.
Residential group
SM Prime’s residential group, which accounts for 36 percent of consolidated revenues, reported a 26-percent revenue increase to P21.43 billion for the period, from P17.05 billion of last year. High-rise housing projects in Metro Manila launched from 2016 to 2018 continue to drive the growth of this segment, it said.
SM Development Corp., its residential business unit, recorded a 20-percent increase in reservation sales for the first six months to P41.46 billion, from P34.45 billion of last year. Unit sales rose 6 percent to 9,877 units from 9,319 units last year.
Lane Residences in Davao City topped the sales during the period, followed by Sail Residences in Pasay and Glam Residences in Quezon City.
Its commercial properties group and hotels and convention centers, meanwhile, reported a combined revenue growth of 13 percent to P4.63 billion from P4.11 billion last year.
Operating income increased 18 percent to
P2.34 billion from P1.99 billion last year, while operating income margin rose
51 percent from 48 percent last year.
SM Prime has 11 office buildings with a combined gross floor area of 642,000
square meters as of end June.
The company’s first campus building, the NU Tower at the Mall of Asia Complex in Pasay, is set to be launched in the second half, while the FourE-Com Center is scheduled for launch by 2020.
SM Prime currently has seven hotels with over 1,700 rooms, four convention centers and three trade halls.
The company launched Park Inn by Radisson Iloilo last April and is set to launch Park Inn North Edsa in Quezon City during the second half.