SM Prime Holdings, Inc. (SM Prime), the mall operating unit of Sy-led SM Investment Corp. (SM Investments), yesterday said that profit for the first half of the year reached P3.8 billion, a 10 percent increase from P3.4 billion last year.

Consolidated revenues reached P11.3 billion, 17 percent higher from the P9.6 billion recorded in 2009. Earnings before tax, depreciation charges and debt servicing (EBITDA) reached P7.7 billion, for an EBITDA margin of 68 percent.

‘The encouraging results delivered by SM Prime validate our positive sentiment on the economy, which is further bolstered by robust consumer spending. In that light, we look to the second half of the year with more optimism in executing our expansion plans. We aim to offer more avenues for high quality yet affordable products and services, for which the SM brand is known,’ said SM Prime president Hans T. Sy.

The Q2 performance was recorded at P1.9 billion in profit, 11 percent increase higher compared to P1.7 billion last year while consolidated revenues reached P5.9 billion, 19 percent higher from a year ago.

The first half of the year saw rental revenues continue to contribute the biggest share, growing by 13 percent, reaching P9.5 billion compared to P8.4 billion last year.

The increase was supported by the continued strength of the consumer and remittance sectors and the added space resulting from the opening of new malls in 2009 namely, SM City Naga, SM City Rosario, and SM Center Las Piñas, together with SM City Tarlac, which opened in April of this year, the company said.

In addition, expansion projects in SM North Edsa, SM City Fairview, and SM City Rosales also contributed to rental revenue growth, it added.