SM Prime Holdings Inc., the country’s leading shopping mall operator and developer, booked a P6 billion net income in 2007, up to 10 percent from P5.4 billion in 2006.

SM Prime said in a statement that gross revenues rose 16 percent to P15.3 billion primarily due to the opening of three new malls and the expansion of three existing outlets.

Rental revenue for the period grew 17 percent to P12.8 billion from P11 billion in 2006 while cinema ticket sales improved 15 percent to P1.8 billion from year-ago level of P1.6 billion.

Income from operations climbed to P8.7 billion, up to 14 percent from P7.7 billion in 2006, while operating expenses increased 19 percent to P6.6 billion.

SM Prime opened the three new malls in 2007, namely SM City Bacolod, with a gross floor area of 61,413 square meters; SM City Taytay, 91,920 sq.m.; and SM Supercenter Muntinlupa, 52,072 sq.m.

The three new malls that were expanded were SM City Pampanga, SM City Cebu, and SM Mall of Asia.

SM Prime operated 30 malls nationwide as of end 2007, 13 of which are in Metro Manila. The malls had a combined gross floor area of 3.9 million sq.m. and an average daily pedestrian count of 2.5 million.

“We are satisfied with this achievement, which we owe to to all our stakeholders. What we have attained last year serves as a challenge for us to work and strive even harder in 2008,�? said SM Prime president Hans Sy in a statement.

The company this year is scheduled to open three new malls and expand two for an estimated capital expenditure of P6 billion. The new malls to be opened are SM Supercenter Rosales in Pangasinan, SM City Baliuag in Bulacan, and SM City Marikina.

Shopping malls scheduled for expansion are SM City Fairview and SM Megamall.

SM Prime hopes to operate 33 malls in the Philippines with a combined gross floor area of 4.1 million sq.m. by the end of this year.

The company, meanwhile, is studying the possibility of folding in the Sy family’s China malls into SM Prime.

The Sy family owns three malls in China – Xiamen, Chengdu, and Jinxing City.
A fourth mall located in a seven hectare property in Chonquien, China is currently being constructd and is scheduled to be operational by 2009.

SM Prime earlier commissioned Citigroup Global Markets Ltd. and Macquarie (Asia) Pte. Ltd.,  to do the valuation of the family’s operations in China. The study is expected to be completed within the year.