SM Prime Holdings, Inc. (SM Prime), the Philippines’ largest shopping mall developer and operator, reported an 8 percent growth in consolidated net income in the first nine months of the year to P5.1 billion.

The firm disclosed to the Philippine Stock Exchange (PSE) that revenues grew by 14 percent to P14.6 billion during the first nine months of the year, while EBITDA increased 13 percent to P10.0 billion, for an EBITDA margin of 69 percent.

For the third quarter of 2009 alone, SM Prime posted a 9 percent increase in net income to P1.7 billion while revenues also grew 14 percent to P5.0 billion. EBITDA stood at P3.5 billion resulting in an EBITDA margin of 69 percent. These results include the operations of the three SM malls in China. The SM malls in China contributes 5 percent to total revenues and 2 percent to net income.

SM Prime president Hans T. Sy said “SM Prime performed up to par and realized its objectives for the period, notwithstanding earlier fears arising from the impact of the global recession.”

Although there is some disruption in the operations of SM City Rosales and the basement of SM City Sta. Mesa brought about by the recent typhoons, Sy said these have minimal impact on the company, as the physical damage and business disruption are covered by insurance.

“We are speeding up the reopening of the affected malls so that employees who depend on these malls for their livelihood may go back to work immediately. Both malls are expected to resume full operations by November 26, 2009,” Sy said.

He noted that “the resiliency of OFW remittances augurs well for the company as we move into the Christmas season. Our positive third quarter results are a validation of the company’s sound operating principles and deep understanding of its markets.”

From January to September of 2009, rental fees, which grew 15 percent to P12.7 billion, accounted for the largest share of SM Prime’s consolidated revenues.

The increase came from both same store rental growth, which increased 5 percent and from additional floor space created by a new mall and several expansion projects completed in the first nine months of 2009.

Meanwhile, cinema ticket sales grew by 8 percent to P1.4 billion from P1.3 billion in 2008 due to a good number of blockbuster movies shown.

Operating expenses during the first nine months of 2009 increased by 18 percent, to P6.9 billion, from P5.8 billion during the same period in 2008, due mainly and expectedly to the opening of new malls.

Income from operations reached P7.7 billion, representing an 11 percent increase, year-on-year.