Strong revenues and the opening of new malls boosted SM Prime Holdings, Inc.’s net income by 10% last year to P5.45 billion. 

Five malls opened in 2006: SM City Sta. Rosa, SM City Clark, SM Supercenter Pasig, SM City Lipa, and the SM Mall of Asia, considered the largest mall in the country.

The latter alone accounts for about 11% of SM Prime’s total gross floor area.  Average daily foot traffic increased to two million from 1.7 million in 2005, while cinema ticket sales also picked up by 22% to P1.6 billion. 

Earnings before interest, taxes, depreciation and amortization stood at P9.3 billion, up 24%.  ‘Our 2006 results reinforce SM Prime’s dominant and profitable position in the Philippine mall business.

It’s a position we take with the highest degree of responsibility and commitment for continued growth and service innovation,’ SM Prime President Hans Sy said in a statement.  SM Prime, a subsidiary of holding company SM Investments Corp., is spending P7 billion to open four new malls and expand three existing ones this year. It is set to open its first new mall for the year in Bacolod on March 2. 

Other malls opening later in the year are SM City Taytay, SM Supercenter Muntinlupa and a strip mall called the Sunset Strip at the Esplanade, fronting the Manila Bay and right across the SM Mall of Asia. Malls up for expansion are SM City Cebu, SM City Fairview, and SM City San Fernando, Pampanga. 

SM Prime earlier reported P2.77 billion in net income for the first six months of 2006, compared with P2.54 billion in 2005, on revenues of P6.13 billion. 

In an earlier interview, Mr. Sy said the group is preparing to open new malls in 2008 and is gearing for further expansion in China. The group is opening a third mall in Chengdu province. 

SM Prime ended 2006 with 27 malls with a gross floor area of 3.6 million square meters.  Shares of SM Prime closed 4.08% higher yesterday at P12.75.