SM Prime Holdings, Inc., the Philippines’ dominant shopping mall developer and operator, said its net income from January to June rose by 10 percent to P3.18 billion from P2.9 billion in the same period last year.

In a report filed with the Philippine Stock Exchange, SM Prime said revenue grew by 8 percent to P8.37 billion in the first semester from P7.75 billion in the same period last year.

SM Prime’s results for the first half of 2008 consolidated the financials of the three SM malls in China following their acquisition late last year. The SM China malls are located in the cities of Xiamen, Jinjiang in Southern China, and Chengdu in Central China. They have reported a combined net income of P370 million for the first half.

SM Prime’s consolidated rental revenues still contributed the biggest share, growing by 11% and amounting to Php7.17 billion, as compared to Php6.43 billion during the same period last year. Growth came from a mix of growth in retail sales and expansion in mall space with three SM malls opened in 2007—SM City Bacolod, SM City Taytay, and SM Supercenter Muntinlupa. Three existing malls, namely SM City Pampanga, SM City Cebu, and Mall of Asia, were expanded last year.

Operating expenses during the first six months of 2008 increased by only 6%, to Php3.77 billion from Php3.56 billion, due largely to effective cost saving initiatives implemented in all SM malls. Income from operations rose to Php4.6 billion, up 10% from Php4.2 billion.

Cinema ticket sales, however, decreased by 9% to Php0.9 billion from Php1.0 billion. The decline was attributed to the lack of blockbuster movies shown during the first half of 2008, in contrast to the same period last year.

The malls in China contributed P370 million in revenue during the six-month period.