Tuesday, 10 November 2009 00:00 [ manilatimes.net ]
By Chino S. Leyco, Reporter
THE Philippines’ largest shopping mall developer and operator announced on Monday that its profit in the first nine months grew by single digit as revenues climbed. In a statement, SM Prime Holdings Inc. said that its net income from January to September reached P5.1 billion, an 8-percent increase compared with the same period last year.
Revenues for the same period grew by 14 percent to P14.6 billion while earnings before interest, taxes, depreciation, and amortization increased 13 percent to P10 billion, for an EBITDA margin of 69 percent.
For the third quarter alone, SM Prime posted a 9-percent increase in net income, amounting to P1.7 billion as revenues rose by 14 percent to P5 billion.
He also said SM Prime performed up to par and realized its objectives for the period, notwithstanding earlier fears arising from the impact of the global recession.
During the nine-month period, rental fees grew 15 percent to P12.7 billion, which accounted for the largest share of SM Prime’s consolidated revenues.
“The resiliency of OFW [overseas Filipino worker] remittances augurs well for the company as we move into the Christmas season. Our positive third quarter results are a validation of the company’s sound operating principles and deep understanding of its markets,” Sy said.
Meanwhile, cinema ticket sales grew 8 percent to P1.4 billion from P1.3 billion last year due to number of blockbuster movies shown such as Transformers 2, You Changed My Life, Harry Potter and the Half Blood Prince, G.I. Joe 2D and In My Life, among others.
Income from operations reached P7.7 billion, representing an 11-percent increase year-on-year.
Operating expenses during the first nine months also increased by 18 percent to P6.9 billion, from P5.8 last year because of the opening of new malls.
Last month, SM Prime inaugurated SM Center Las Piñas. It is also scheduled to unveil SM City Rosario in Cavite within the fourth quarter of this year.
Meanwhile, Hans Sy, SM Prime president, said SM City Santa Mesa and SM City Rosales are expected to resume this month.
“Although there is some disruption in the operations of SM City Rosales and the basement of SM City Santa Mesa brought about by the recent typhoons, these have minimal impact on the company, as the physical damage and business disruption are covered by insurance,” he said.
“We are speeding up the reopening of the affected malls so that employees who depend on these malls for their livelihood may go back to work immediately,” Sy added.
By end-2009, SM Prime will have 36 malls nationwide, and including the three SM China malls, its total estimated gross floor area will reach 4.9 million square meters.
____________________________________________________________________________________
