Tuesday, August 2, 2011
abs-cbn NEWS.com

    MANILA, Philippines - SM Prime Holdings, Inc., the Philippines’ dominant shopping mall developer and operator, posted a better than expected 14% increase in net income for the first six months of 2011.
    In a disclosure to the local bourse, the firm said net income rose to P4.27 billion from P3.76 billion in the same period last year.
    Revenues, on the other hand, reached P12.71 billion, for a 12% increase year-on-year.
    EBITDA (earnings before interest, taxes, depreciation, and amortization) for the period was at P8.68 billion, or an increase of 12% and margin of 68%.
    The growth is anchored on the opening of new local malls in 2010, same-store sales of 7%, as well as much improved performance in China malls.
    SM Prime also reported lower borrowing costs as a result of lower interest rates and debt management initiatives, which includes the prepayment of higher interest-bearing loans through refinancing that also lengthened the maturity of the company's loans.
    SM Prime President Mr. Hans T. Sy 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.'
    First half rental revenues grew 15% to P10.92 billion, as compared to P9.49 billion during the same period last year.
    The increase was brought about by healthy consumer spending, which resulted in a 7% growth in same store sales and additional rental space from the opening of new SM malls in 2010. These malls are SM City Tarlac, SM City San Pablo, SM City Calamba, and SM City Novaliches.
    Cinema ticket sales declined slightly to P1.3 billion, compared to P1.37 billion during the same period last year due to a low turnout of blockbuster movies.
    Operating expenses during the first six months of 2011 rose 11% 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% from P5.98 billion.
    In terms of gross revenues, the three malls in China contributed almost a billion for the first half, or 8% of total consolidated revenues.
    In terms of net income, the three malls contributed Php0.21 billion for the first six months, or 5% 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. Rental revenues grew sharply by 57% to P0.95 billion.
    The average occupancy rate for the three malls in China is now at 91%.