[ Malaya.com.ph ] August 2. 2011
Mall developer SM Prime Holdings Inc. said profit for the first six months grew 14 percent to P4.27 billion from P3.76 billion in the same period last year.
Initial figures released by the company showed revenue reached P12.71 billion, 12 percent higher.
"Ebitda (earnings before interest, tax, depreciation and amortization) for the period was at P8.68 billion, for an increase of 12 percent and an Ebitda margin of 68 percent. Better growth resulted from the opening of new Philippine malls in 2010, same-store sales of 7 percent, much improved performance in SM’s China malls and lower borrowing costs. The latter is a result of lower interest rates and debt management initiative that includes the prepayment of higher interest-bearing loans through refinancing that also lengthened the maturity of the company’s loans," the company said.
"For the first half of this year, SM Prime exceeded expectations by continuing to implement its proven business model which focuses on building long-term tenant relationships and effective innovation. This is further supported by a capable organization that is firmly committed to satisfy the various requirements of our millions of loyal customers," said Hans T. Sy, SM Prime president.
First-half rental revenue grew 15 percent to P10.92 billion, against P9.49 billion in the first semester of 2010.
SM Prime said the increase was brought about by healthy consumer spending that resulted in a 7 percent growth in same-store sales and additional rental space from the opening of new SM malls in 2010 – SM City Tarlac, SM City San Pablo, SM City Calamba, and SM City Novaliches.
Cinema ticket sales reached P1.3 billion, compared with P1.37 billion last year, due to a low turnout of blockbuster movies for the period.
Operating expenses rose 11 percent to P5.92 billion from P5.32 billion due to an increase in administrative expenses. Income from operations increased to P6.79 billion, up 13 percent from P5.98 billion.
In terms of gross revenues, the three malls in China contributed P0.98 billion for the first half or 8 percent of total consolidated revenues. In terms of net income, the three malls contributed P0.21 billion or 5 percent of total consolidated net income.
The SM China malls are enjoying healthy increases in rental rates and much higher occupancy levels, particularly in SM Xiamen’s Lifestyle Center and SM Chengdu, the company said.
Rental revenue grew sharply by 57 percent to P0.95 billion. The average occupancy rate for the three malls in China is 91 percent.
For the second quarter of 2011, SM Prime reported a 15 percent growth in consolidated net income to P2.15 billion from P1.87 billion during the same period in 2010. Consolidated revenue grew 12 percent to P6.64 billion, compared with P5.92 billion during the second quarter of 2010. Ebitda for April to June 2011 rose 13 percent to P4.48 billion, for an Ebitda margin of 68 percent.
In May this year, SM City Masinag opened with 90,261 sq. meters of space.
Later this year, SM Prime is set to open SM City San Fernando in Pampanga, SM City Olongapo in Zambales, and SM City Suzhou in China. The company is also set to expand two of its existing malls, namely SM City Davao and SM City Dasmariñas in Cavite.
By year-end, SM Prime will have 43 malls in the Philippines and four in China, with a gross space of 5.2 million sq.m. in the Philippines and 0.6 million sq.m. in China.
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