SM Prime Holdings Inc. (SMPH.PH) Tuesday said net profit in the third quarter rose 8.2% on year, lifted by increased revenue from the steady expansion of its shopping mall network in the Philippines and China. 

‘It is very encouraging for us to see steady growth in SM Prime’s operations this year…(in spite of) a very challenging business climate,’ SM Prime President Hans Sy said in a statement.

‘We feel fortunate that Asia appears to be in a much better position to weather the global financial turmoil,’ he added.

The operator of the Philippines’ largest shopping mall network said July-September net profit rose to PHP1.53 billion (US$ 31 million) from a restated PHP1.41 billion a year earlier as revenue increased to PHP4.47 billion from PHP3.89 billion.

Revenue includes rental income as well as sales of cinema tickets.

Rental income increased 20% on year to PHP3.88 billion in the third quarter on gains from the opening of new Philippine retail facilities late last year and the acquisition of shopping malls in China.

Fewer blockbuster films shown in the third quarter pulled down ticket sales to PHP452.2 million this year from PHP476.1 million last year.

In the nine months to September, SM Prime posted a net profit of PHP4.70 billion, up from PHP4.31 billion a year earlier.

Revenue increased to PHP12.84 billion from PHP11.64 billion, with the three shopping malls in China contributing PHP660 million, up 47% on year.

Operating expenses during the first nine months only rose 9% on year to PHP5.9 billion despite the higher price of fuel and power, as well as additional maintenance for newly-opened shopping malls, as the company kept close tabs on costs.

SM Prime already operates 31 shopping facilities in the Philippines and three in China.

The company plans to open two more shopping malls in the Philippines before the year-end, pushing total gross floor area to 4.7 million square meters.

It is scheduled to complete the expansion of two shopping malls in metropolitan Manila early in 2009.