SM Prime Holdings Inc. (SMPH.PH), operator of the Philippines’ largest shopping mall chain by sales, said Thursday that second-quarter net profit rose 12% on year, bolstered by the steady expansion of its shopping mall network. 

SM Prime said net profit rose to PHP1.6 billion (US$ 36 billion) in the April-June quarter from PHP1.4 billion last year as revenue increased 8% on year to PHP4.4 billion.

In the first half, net profit increased 10% to PHP3.2 billion from PHP2.9 billion as revenue increased 8% on year to PHP8.4 billion.

SM Prime said its earnings this year were boosted by contributions of three shopping malls opened late in 2007 and the three malls in China that were acquired by the company from its main shareholder – the family of tycoon Henry Sy.

It said the three shopping malls in China contributed PHP370 million to group revenue. Meantime, ticket sales from movie houses within the shopping malls declined 9% on year to PHP900 million in the first half due to lack of blockbuster films this year, SM Prime said.

Operating expenses in the six months rose 6% on year to PHP3.8 billion due to cost savings, boosting operating income 10% on year to PHP4.6 billion.

‘We are satisfied with the company’s first half results. Inspite of a much tougher operating environment brought about by global challenges, we still managed to grow and move forward,’ said SM Prime President Hans Sy.