THE Philippines’ largest mall builder and operator said earnings last year rose on increased rental revenues brought about by three new shopping centers it opened and expanded in 2007. Ticket sales at its cinemas, especially those located at its new malls, also helped boost profit. 
 

SM Prime Holdings Inc. (SMPH), controlled by mall tycoon Henry Sy, reported a 10-percent rise in net profit to P6 billion in 2007 from P5.4 billion a year earlier, bolstered by a 16-percent increase in gross revenues amounting to P15.3 billion.

In a statement Friday, the publicly-listed company said that rental revenues contributed the largest to its coffers, climbing by 17 percent to P12.8 billion compared to P11.0 billion in 2006.

Since new malls added 3506 cinema seats to the company’s existing 119,320 capacity, cinema ticket sales increased by 15 percent to P1.8 billion. Ticket sales were also helped by the popularity of its 3D-capable IMAX Theatre as well as the showing of blockbuster movies.

Meanwhile, the company’s income from operations rose to P8.7 billion, up 14.0 percent from P7.7 billion in 2006.

Last year, SMPH opened SM City Bacolod, with a gross floor area (GFA) of 61,413 square meters (sqm); SM City Taytay, with a GFA of 91,920 sqm; and SM Supercenter Muntinlupa, with a GFA of 53,986 sqm. The company also expanded its malls in SM City Pampanga, SM City Cebu and SM Mall of Asia.

As of end-2007, SM Prime’s 30 malls nationwide, 13 of which are in Metro Manila, had a combined GFA of 3.9 million sqm, with an average daily pedestrian count of 2.5 million.

For 2008, the company plans to open three new malls and expand two of its existing malls, for an estimated capital expenditure of P6.0 billion. The new malls to be opened are the SM Supercenter Rosales in Pangasinan; SM City Baliuag in Bulacan; and SM City Marikina. SM City Fairview and SM Megamall are scheduled for expansion.