SM Prime Holdings Inc., which owns 33 SM malls nationwide, said ticket sales of its movie houses slightly increased 0.326 percent—or P6 million—to P1.849 billion in 2008 from P1.843 billion in 2007. It attributed the small increase to the fewer movies shown and the lack of blockbuster pictures last year.
In 2007, SM Prime, which is controlled by retail magnate Henry Sy Sr. and his family, said ticket sales in 2006 amounted to P1.597 billion.
In a report filed with the Philippine Stock Exchange, SM Prime said ticket sales translate to 9.97 percent of P18.547 billion in gross revenues in 2008; 10.968 percent of P16.803- billion gross revenues in 2007; and 10.312 percent of P15.487-billion gross revenues in 2006.
The mall operator said the major blockbusters that made money in 2008 were A Very Special Love, Iron Man, For the First Time, Batman The Dark Knight and Forbidden Kingdom. In 2007, the major films that attracted moviegoers were Spider Man 3, Transformers, Harry Potter 5, Ang Cute ng Ina Mo and One More Chance.
SM Prime reported net income of P6.733 billion in 2008, up 7.16 percent from P6.283 billion in 2007. Despite the ongoing global economic slump, the company said it intends to continue its expansion across China and the Philippines in the coming year.
Earlier, president Hans Sy said SM Prime plans to continue targeting second tier cities in China instead of Beijing or Shanghai, while at the same time extending its expansion into dense population centers in outlying areas of the Philippines.
SM Prime has always considered China’s provincial cities a solid investment because they haven’t seen the same inflation in land and labor costs that have affected Shanghai and Beijing in recent years. At the same time, Mr. Sy said, cities such as Xiamen and Chongqing have growing populations and have seen a steady accumulation of wealth.
The company also plans to add one more mall to the three it already has in China. The company will also build three more malls in the Philippines in 2009, and add another five in 2010.