SM Prime Holdings, Inc., the country’s top shopping mall developer and operator, reported a 10 percent increase in consolidated net income in the first half of 2008 to P3.2 billion from P2.9 billion in the same period last year.

The firm disclosed that revenues reached P8.4 billion, for an 8 percent increase from P7.7 billion during the first six months of 2007.

EBITDA for the period increased by 9 percent to P5.9 billion for an EBITDA margin of 70 percent.

For the second quarter, SM Prime attained a 12 percent increase in consolidated net income to P1.6 billion from P1.4 billion in the same quarter last year as revenues rose 4 percent to P4.4 billion from P4.1 billion.

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.

For the first half of 2008, SM Prime’s consolidated rental revenues still contributed the biggest share, growing by 11 percent and amounting to P7.2 billion, as compared to P6.4 billion during the same period last year.

Growth came from a mix of growth in retail sales which yielded a 5 percent increase in same mall sales, and from expansion in mall space with three SM malls opened in 2007, namely, SM City Bacolod, SM City Taytay, and SM Supercenter Muntinlupa.

In addition, three existing malls, namely SM City Pampanga, SM City Cebu, and Mall of Asia, were expanded last year.

Following its expansion, SM City Cebu became one of the largest malls in the world, joining three other SM malls that are already listed among the world’s largest such as SM Mall of Asia, SM North EDSA, and SM Megamall.

Operating expenses during the first six months of 2008 increased by only 6 percent, to P3.8 billion from P3.6 billion, due largely to effective cost saving initiatives implemented in all SM malls.

Consequently, income from operations rose to P4.6 billion, up 10 percent from P4.2 billion.