(09 November 2009. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime), the Philippines’ largest shopping mall developer and operator, realized a consolidated net income of Php5.1 billion in January to September 2009, for an 8% growth compared to the same period last year. Revenues, on the other hand, grew by 14% to Php14.6 billion during the first nine months of the year, while EBITDA increased 13% to Php10.0 billion, for an EBITDA margin of 69%.
For the third quarter of 2009 alone, SM Prime posted a 9% increase in net income, amounting to Php1.7 billion. Revenues for the quarter grew 14% to Php5.0 billion. EBITDA stood at Php3.5 billion resulting in an EBITDA margin of 69%.
These results include the operations of the three SM malls in China. The SM China malls are located in the cities of Xiamen and Jinjiang in Southern China, and Chengdu in Central China. 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. In terms of share, the SM malls in China contributes 5% to total revenues and 2% to net income.
SM Prime President Mr. Hans T. Sy said, “SM Prime performed up to par and realized its objectives for the period, notwithstanding earlier fears arising from the impact of the global recession. Although there is some disruption in the operations of SM City Rosales and the basement of SM City Sta. Mesa brought about by the recent typhoons, these have minimal impact on the company, as the physical damage and business disruption are covered by insurance. We are speeding up the reopening of the affected malls so that employees who depend on these malls for their livelihood may go back to work immediately. Both malls are expected to resume full operations by November 26, 2009. The resiliency of OFW remittances augurs well for the company as we move into the Christmas season. Our positive third quarter results are a validation of the company’s sound operating principles and deep understanding of its markets.”
From January to September of 2009, rental fees, which grew 15% to Php12.7 billion, accounted for the largest share of SM Prime’s consolidated revenues. The increase came from both same store rental growth, which increased 5% and from additional floor space created by a new mall and several expansion projects completed in the first nine months of 2009. The new mall that opened in May of this year is SM City Naga, while those expanded were SM City Rosales in Pangasinan, SM City Fairview, and SM City North EDSA through its SkyGarden.
Combined, the new mall and the expansion projects added approximately 141,000 square meters (sqm) to SM Prime’s total gross floor area (GFA).
Meanwhile, cinema ticket sales grew by 8% to Php1.4 billion from Php1.3 billion in 2008 due to a good number of blockbuster movies shown such as “Transformers 2”, “You Changed My Life”, “Harry Potter and the Half Blood Prince”, “G.I. Joe 2D” and “In My Life”, among others.
Operating expenses during the first nine months of 2009 increased by 18%, to Php6.9 billion, from Php5.8 billion during the same period in 2008, due mainly and expectedly to the opening of new malls. Income from operations reached Php7.7 billion, representing an 11% increase, year-on-year.
In October 2009, SM Prime inaugurated SM Center Las Piñas in Las Piñas City. In addition, the company is scheduled to unveil within the fourth quarter of this year SM City Rosario in Cavite. Thus, by end of 2009, SM Prime will have 36 malls nationwide, and including the three SM China malls, its total estimated GFA will reach 4.9 million sqm.
-End-
For further information, please contact:
Mr. Jeffrey C. Lim
Executive Vice President
SM Prime Holdings, Inc.
Email: [email protected]
Tel. No.: 831-1000 loc. 1406
Date:
Monday, November 9, 2009
Source:
SM Prime Holdings