MALL operator SM Prime Holdings Inc. reported a higher net income last year as a result of its increased rental from new shopping malls launched some two to three years ago, as well as the strong performance of its Chinese mall operation.
The company said in its report that its profit in 2012 hit P10.53 billion, higher by 16 percent than its net income of P9.1 billion in the previous year.
Revenues for the year rose by 14 percent to P30.73 billion, while its earnings before interest taxes, depreciation and amortization (Ebitda) rose by 12 percent to P20.7 billion, or an Ebitda margin of 67 percent.
The figures included operations of its five SM malls in China located in the cities of Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing.
The company did not provide the figures for its Chinese operation.
“We are confident that the Philippine growth story, which we saw unfold last year will continue in 2013. We will proceed with our aggressive expansion plans and continue to pursue new opportunities for growth. We sincerely thank all our stakeholders for another year of remarkable growth and for the confidence they have entrusted upon us,” SM Prime President Hans Sy said in a statement.
For last year, the country’s largest mall operator said its rental contributed 84 percent to the mall’s revenues as new spaces came from its new malls in Olongapo, Consolacion in Cebu, San Fernando in Pampanga, General Santos, Lanang in Davao and Chongqing in China.
Operating expenses for full year 2012 increased by 14 percent to P13.99 billion, largely due to expenses related to mall expansion. Income from operations reached a 14-percent growth to P16.73 billion.
Meanwhile, cinema ticket sales from January to December 2012 increased by 14 percent due to a series of both local and international blockbuster movies.
“In addition, the conversion of all cinema screens to digital and the roll-out of cinema turnstile system have helped make the cinema viewing experience more convenient for movie-goers,” the company said.
This year the company is scheduled to open malls in Taguig City (Metro Manila) and Cauayan in Isabela, while SM Megamall will be expanded with the construction of Building D.
At the end of 2013, SM Prime will have 48 malls in the Philippines and five in China.