Listed mall operator SM Prime Holdings Inc. (SM Prime) registered a growth of 15 percent to P5.64 billion in its net income for the first half of this year, as its new malls started to make higher contributions to the bottomline.
In a statement, the country’s largest mall developer and operator reported that its net income for the first six months of this year grew by 15 percent to P5.64 billion from P4.92 billion year-on-year.
Specifically, the second-quarter net income of SM Prime climbed by 15 percent to P2.85 billion on gross revenues of P8.72 billion, which is up 16 percent.
Revenues of SM Prime for the period also grew 14 percent to P16.55 billion from P14.57 billion during the same period the past year.
Earnings before interest, taxes, depreciation and amortization (Ebitda) of the company for the first half stood at P11.09 billion, reflecting a 14-percent increase year-on-year while Ebitda margin stood at 67 percent.
According to the company, the new malls it opened in 2012 and 2013 largely pushed rental revenues higher, which in turn made higher contributions to the firm’s profit. Same-store rental growth of the mall developer stood at 7 percent.
Operating expenses of SM Prime during the first six months of 2013 also rose 13 percent to P7.71 billion from P6.79 billion, while income from operations increased 14 percent to P8.84 billion from P7.78 billion.
In terms of gross revenues, the five malls in China contributed P1.39 billion, or 8 percent of total consolidated revenues.
“SM Prime continues to deliver strong revenue growth affirming our positive outlook for 2013,” SM Prime President Hans Sy said.
By yearend, SM Prime will have 48 malls in the Philippines and five in China with an estimated combined gross floor area of seven million square meters.
Madelaine B. Miraflor