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By Likha C. Cuevas-Miel, Reporter
THE Philippines’ largest mall owner and
operator announced that its first-quarter profit rose at a slower
pace this year.
In a statement, SM Prime Holdings (SMPH) said
its net income in the first three months this year grew by 7 percent
to P1.6 billion. This was slower than the 11-percent expansion seen
in the same period last year.
“SM Prime continued to exhibit growth in the
first quarter amid a more challenging environment. As such, we are
moving ahead with our expansion program as planned.” Hans T. Sy,
SMPH president, said.
Gross revenues rose by 8 percent to P3.8 billion
mainly due to higher rental revenues as the company added three new
malls that opened last year. These were SM City Bacolod, SM City
Taytay and SM Supercenter Muntinlupa.
With this, rentals from all the malls—which
comprise 85 percent of total revenues—grew by 10 percent to P3.3
billion while same store rental rose by 5 percent despite the
on-going redevelopment plan in SM Megamall and SM North Edsa. Last
year, gross rental revenues had grown 26 percent, while same store
rentals increased 7 percent.
Cinema ticket sales this year were flat, as
against last year’s 19 percent expansion. The company blamed this
year’s weak performance on the absence of blockbuster movies.
Due to the new malls, operating expenses
increased by 6 percent to P1.6 billion, while operating income grew
by 9 percent to P2.2 billion due to cost cutting measures.
The company is set to open SM City Marikina in
Metro Manila, SM City Baliuag in Bulacan, and SM Supercenter Rosales
in Pangasinan, increasing the total number of malls to 33. At the
same time, the company is expanding SM Megamall and SM City
Fairview. By year-end total gross floor area will reach 4.2 million
square meters.
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