SM PRIME HOLDINGS INC. POSTED an 8-percent growth in first semester net profit as the retail sector remained resilient to the global economic downturn.

SM Prime, owned by the family of retail tycoon Henry Sy, booked a consolidated net profit of P3.4 billion compared to P3.2 billion in the same period last year on the back of a 15-percent year-on-year growth in consolidated revenue to P9.6 billion.

The company’s core cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) for the period increased 13 percent to P6.6 billion.

For the second quarter alone, SM Prime posted an 8-percent year-on-year increase in net income to P1.7 billion. Revenue for the quarter rose 14 percent to P5 billion. Ebitda for the quarter was up 13 percent at P3.4 billion.

SM Prime president Hans Sy said: “We are pleased to have met our targets for the first half of this year in spite of the ongoing global financial crisis. Our results reinforce our belief in the resilience of the Philippine economy. We remain steadfast in pursuing our growth and expansion programs in order to better serve our millions of loyal customers.”

For the first semester, SM Prime’s consolidated rental revenue continued to contribute the biggest share, growing 17 percent to P8.4 billion.

“The growth resulted from an active retail environment defying weak market expectations amid an ongoing global recession. The other growth driver was the added space from the opening of new malls in 2008, namely SM City Marikina, SM City Rosales and SM City Baliwag, together with SM City Naga, which opened May of this year,” SM Prime reported.

Expansion projects in SM North Edsa, SM Megamall and SM Fairview also contributed to rental revenue growth. The new malls and expansions in 2008 and 2009 added 477,000 square meters (sq.m.) to the company’s total gross floor area (GFA) and presently register an average occupancy rate of 96 percent.

Meanwhile, due to an increase in the number of blockbuster movies shown this year, cinema ticket sales from January to June grew 5 percent to P930 million from a year ago.

Operating expenses during the first six months rose 20 percent to P4.5 billion due largely to the new malls opened. Income from operations increased to P5.1 billion, up 12 percent year-on-year.

In terms of gross revenue, the three malls in China contributed P500 million during the first six months, or 5 percent of total consolidated operating revenue. In terms of net income, the three malls in China contributed P60 million, or 2 percent of total consolidated net profit.

By end-2009, SM Prime expects to have 36 malls in the country, with an estimated GFA of 4.9 million sq.m.