Wednesday, May 06, 2009 [ manilatimes.net ]
By Chino S. Leyco, Reporter
DESPITE the curren t economic slowdown, the Philippines’ biggest mall operator announced Tuesday that its net income grew in the first quarter of the year. In a statement, SM Prime Holdings Inc. reported a 7-percent increase in its profits to P1.7 billion at end-March from P1.6.billion in the same three-month period last year.
Its revenues rose 18 percent to P4.7 billion, while its operating expenses increased 23 percent, to P2.2 billion, from P1.8 billion last year.
Its earnings before interest, tax, depreciation, and amortization (EBITDA) grew 14 percent to P3.3 billion, for an EBITDA margin of 69 percent.
Income from operations registered a 14-percent growth from P2.2 billion last year to P2.5 billion this year.
SM Prime’s first quarter results include the operations of the three SM malls in China, following their acquisition in early last year.
The China malls are located in the cities of Xiamen and Jinjiang in Southern China, and Chengdu in Central China.
“We are very pleased by the resilience that our malls are experiencing despite earlier prognosis of a more challenging economic environment. The SM malls continue to enjoy high foot traffic and healthy sales growth,” Hans Sy, SM Prime president said.
Despite the growth, Sy said the company is also closely monitoring the effects of the global financial crisis on local demand, especially on consumer spending.
“We are hopeful that in moving forward it will have much less of an impact in Asia,” he added.
Rental fees still accounted for the largest share of SM Prime’s first-quarter revenues, reaching P4.1 billion, or a year-on-year growth of 19 percent.
SM Prime said the growth is due to new malls and their expansion last year.
The new malls opened last year were SM City Marikina, SM City Rosales and SM City Baliwag. In addition, mall expansions were completed in The Annex at SM City North Edsa, and The Atrium at SM Megamall.
The new malls and expansion added approximately 353,000 square meters to the company’s total gross floor area.
Cinema ticket sales improved by 8 percent due to more local blockbuster movies such as You Changed My Life, Ang Tanging Ina N’yong Lahat, and When I Met You, among others.
Later this year, the company will open SM City Rosario in Cavite, and SM City Pamplona in Las Piñas.
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