(06 August 2009. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime), the Philippines’ dominant shopping mall developer and operator reported an 8% increase in consolidated net income during the first six months of 2009, to Php3.4 billion from Php3.2 billion in the same period last year. Consolidated revenues, on the other hand, reached Php9.6 billion, for a 15% increase, compared to Php8.4 billion during the first semester of 2008. EBITDA for the period increased by 13% to Php6.6 billion, for an EBITDA margin of 69%. 

For the second quarter of 2009, SM Prime posted an 8% increase in net income, which amounted to Php1.7 billion, from Php1.6 billion during the same period in 2008. Revenues for the quarter reached Php5.0 billion, for a 14% increase, year-on-year. EBITDA for the period totaled Php3.4 billion, for an increase of 13% and an EBITDA margin of 69%.

For the first half of 2009, SM Prime’s consolidated rental revenues continued to contribute the biggest share, growing by 17% and amounting to Php8.4 billion, as compared to Php7.2 billion during the same period last year. The growth resulted from an active retail environment defying weak market expectations amid an ongoing global recession. The other growth driver was the added space from the opening of new malls in 2008 namely, SM City Marikina, SM City Rosales, and SM City Baliwag, together with SM City Naga, which opened in May of this year. In addition, expansion projects in SM North EDSA, SM Megamall, and SM Fairview also contributed to rental revenue growth. The new malls and expansions in 2008 and 2009 added 477,000 square meters (sqm) to the company’s total gross floor area (GFA) and presently register an average occupancy rate of 96%.

Meanwhile, due to an increase in the number of blockbuster movies shown this year, cinema ticket sales from January to June 2009 grew 5% to Php0.93 billion from Php0.89 billion during the same period in 2008. Hit movies shown thus far this year include “You Changed My Life”, “Transformers 2”, “Bestfriends Forever”, “Ang Tanging Ina N’yong Lahat”, and “Angels & Demons”, among others.

Operating expenses during the first six months of 2009 increased by 20% to Php4.5 billion from Php3.8 billion due largely to the new malls opened. Income from operations increased to Php5.1 billion, up 12% from Php4.6 billion.

In terms of gross revenues, the three malls in China contributed Php0.5 billion for the six months ended 30 June 2009, or 5% of total consolidated operating revenues. In terms of net income, the three malls in China contributed Php60 million for the six months ended 30 June 2009, or 2% of total consolidated net income.  The SM China malls’ major tenants include U.S. retail giant Walmart, SM-Laiya Department Store, apparel retailer Giordano, health and beauty store chain Watsons, and international quick service restaurants McDonald’s and KFC, among others.

SM Prime President Mr. Hans T. Sy said, “We are pleased to have met our targets for the first half of this year in spite of the on-going global financial crisis. Our results reinforce our belief in the resilience of the Philippine economy. We remain steadfast in pursuing our growth and expansion programs in order to better serve our millions of loyal customers.”

Following the opening of SM City Naga, SM Prime will be opening later year SM City Rosario in Cavite, and SM Supercenter Pamplona in Las Piñas. By yearend 2009, SM Prime expects to have 36 malls in the country, with an estimated GFA of 4.9 million sqm.   

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For further information, please contact:

Mr. Jeffrey C. Lim
Executive Vice President 
SM Prime Holdings, Inc.
Email: [email protected]

Tel no: 831-1000 loc. 1401

Date: 

Friday, August 7, 2009

Source: 

SMPH, Company Release