Posted on February 23,
2015 10:10:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter
SM PRIME Holdings, Inc. yesterday said
its 2014 net income grew by 13% -- within the range of analysts’ estimates --
on the back of a double-digit growth in revenues.
In a statement, SM Prime said bottom
line last year reached P18.4 billion last year, while revenue went up by 11% to
P66.2 billion.
SM Prime President Hans T. Sy said in
the statement: “We expect this performance to be surpassed this year as the
company pursues its 2015 expansion plans.”
He was referring to four new malls to
be opened this year, as well as the completion of FiveE-comCenter and the
launch of five new housing projects.
“This is in line with our target,”
Alexander Adrian O. Tiu, analyst at AB Capital Securities, Inc., said in a
phone interview. He noted, however, that the results “slightly missed” the
13.6% market consensus from a Bloomberg poll.
Shares in SM Prime shed 28 centavos or
1.42% to close at P19.40 each yesterday.
The company’s rental revenues from
retail and commercial spaces increased by 13% to P36.5 billion in 2014, the
company said in the statement.
“Management attributed the increase in
rental revenue mostly to the new malls that opened and the expansion of existing
malls in 2013 and 2014, namely, SM Aura Premier in Taguig, SM City BF
Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong, SM City Cauayan in
Isabela province and SM Center Angono in Rizal province, which have a combined
total gross floor area of 564,000 square meters,” SM Prime said.
The company’s housing group, which
accounted for 33% of consolidated revenues, “continued to show improvements.”
The group recorded a 7% increase in
real estate sales to P22.2 billion, “mainly driven by the increase in the pace
of construction of sold units” in its condominium developments in Taguig,
Pasay, Manila and Quezon City.
The malls’ cinemas grew their ticket
sales by 14% to P4.3 billion.
“The increase was driven by the
opening of additional digital cinemas in the new malls and expanded malls and
by the launch of international and local blockbuster movies,” SM Prime said.
Together with amusements, cinemas
account for 12% of SM Prime’s consolidated revenue for 2014.
The property developer’s consolidated
costs and expenses increased by 8% to P38.6 billion last year.
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