SHOPPING-MALL operator SM Prime Holdings Inc. said its net income grew 13 percent during the first nine months of the year to P17.5 billion, from P15.5 billion last year.
For the July-to-September quarter alone, its profits rose 15 percent to P4.9 billion, from P4.2 billion in the same period last year. Revenues in the third quarter also went up by 14 percent to P18.5 billion, from P16.3 billion.
Overall revenues of the company improved by 11 percent to P57.8 billion, from P52.2 billion in the first nine months, driven by the sustained growth of its key business units—rental operations and real-estate sales.
“SM Prime sustained its overall performance, as it benefited from the continued growth of the economy. 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 spreads to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” SM Prime President Jeffrey Lim said.
Philippine-mall revenues increased by 9 percent to P32.1 billion, from P29.4 billion last year.
Rentals posted an 11-percent growth to P26.9 billion, from P24.2 billion, driven by a 7-percent growth in same-mall sales, as well as new retail spaces of 1 million square meters in gross floor area added in the past two years. Cinema- and event-ticket sales are at P3.44 billion, flat from last year’s performance.
Revenues generated from amusement and merchandise sales posted the same amount of P1.8 billion, from the same period last year.
Operating income increased by 10 percent to P17.8 billion, from P16.1 billion in the same period last year, as margins slightly improved to 55.3 percent from 54.9 percent.
Meanwhile, SM Prime’s China-mall revenues rose by 5 percent to P3.1 billion, from P2.9 billion, while its operating income grew by 6 percent to P1.5 billion, from P1.4 billion, maintaining the previous year’s operating income margin of 49 percent.
SM Prime has 58 malls in the Philippines and six in China, with a gross floor area of 8.5 million sq m.
SM Prime is scheduled to open SM East Ortigas this December, while SM City Tianjin in China will open in phases toward the end of the year.
By the end of 2016, SM Prime will have a combined gross floor area of almost 9 million sq m.
SM Prime’s residential group, led by SM Development Corp., contributed 32 percent to consolidated revenues and grew by 10 percent to P18.7 billion, from P16.9 billion last year.
The growth was largely due to the sales take-up on ready-for-occupancy units from projects.