Top mall developer and operator SM Prime Holdings, Inc. posted a 10 percent growth in net income to P6 billion in 2007 from the previous year’s P5.4 billion.

The firm disclosed to the Philippine Stock Exchange that gross revenues during the year grew by 16 percent to P15.3 billion, while EBITDA stood at P11 billion, for an increase of 16 percent. ‘SM Prime successfully met its 2007 targets. We are satisfied with this achievement, which we owe to all our stakeholders,’ said SM Prime President Hans Sy.

With three new malls opened and three existing malls expanded in 2007, rental revenues contributed the largest share for the year, increasing by 17 percent to P12.8 billion, compared to P11 billion in 2006. Cinema ticket sales registered a 15 percent increase to P1.8 billion, versus P1.6 billion during the previous year.

This is because the new malls added 3,506 cinema seats to the existing 119,320 total seating capacity, and earnings were bolstered by the sustained popularity of the 3D-capable IMAX Theater, as well as the showing of blockbuster movies.

Income from operations rose to P8.7 billion, up 14 percent from P7.7 billion in 2006.

Operating expenses, on the other hand, increased 19 percent to P6.6 billion. The three new malls inaugurated in 2007 were 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.

Those expanded were 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.

‘We thank our customers for their loyal patronage and continued support, as well as our shareholders for the trust and confidence they placed on us in helming the company.

What we have attained last year serves as a challenge for us to work and strive even harder in 2008,’ said Sy. For 2008, SM Prime intends to open three new malls and expand two of its existing malls, for an estimated capital expenditure of P6 billion.

The new malls to be opened are SM Supercenter Rosales in the Northern Luzon province of Pangasinan, SM City Baliuag in Bulacan Province, which is just north of Manila, and SM City Marikina in Metro Manila. Scheduled for expansion are Metro Manila malls SM City Fairview and SM Megamall.

By the end of this year, SM Prime will have 33 malls in the Philippines, with a combined GFA of 4.1 million sqm.