SM Prime Holdings Inc. (SMPH.PH), operator of the largest shopping mall network in the Philippines, Tuesday said net profit in the first quarter rose 7% on year as rental revenue grew on the back of the company’s new shopping facilities.

SM Prime said net profit rose to PHP1.6 billion (US$ 37.8 million) in the January-March quarter, up from PHP1.49 billion a year earlier.

Revenue rose 8% on year to PHP3.8 billion.

The shopping mall operator used to report on year growth of over 10% in past quarters, aided by strong rental income and ticket sales from its movie houses.

‘The absence of blockbuster movies shown during the period (first quarter) resulted in flat cinema ticket sales,’ the company said.

Rental income was up 10% because of the opening of new shopping malls, while same-store sales were only up 5% because of ongoing renovations in two key facilities.

Operating expense rose 6% on year to PHP1.6 billion because of the operation of new malls. SM Prime is scheduled to open three new shopping malls this year, boosting its total malls in the country to 33.