SM Prime income up 10% to P6B in ’07

Shopping mall giant SM Prime Holdings Inc. reported a 10 percent rise in net profit last year, driven by the opening of three new malls and the expansion of three existing ones.

From P5.4 billion in 2006, SM Prime’s earnings rose to P6 billion on the back of a 16-percent jump in revenues to P15.3 billion.

Income from lease operations, which accounted for the bulk of total revenues, grew 17 percent to P12.8 billion from P11 billion a year earlier.

“SM Prime successfully met its 2007 targets. We are satisfied with this achievement, which we owe to all our stakeholders. We thank our customers for their loyal patronage and continued support, as well as our shareholders for the trust and confidence they placed on us in helming the company. What we have attained last year serves as a challenge for us to work and strive even harder in 2008,“ said SM Prime president Hans Sy.

As of end-2007, SM Prime had a total of 30 malls nationwide with a combined gross floor area (GFA) of 3.9 million square meters (sqm) and an average daily pedestrian count of 2.5 million. Out of the 30 malls, 13 are in Metro Manila.

Cinema ticket sales amounted to P1.8 billion, 15 percent higher than the year ago due to the addition of 3,506 cinema seats to the existing 119,320 total seating capacity.

Income from operations increased 14 percent to P8.7 billion from P7.7 billion while operating expenses went up 19 percent to P6.6 billion.

Among the three new malls opened to the public last year were SM City Bacolod with a gross floor area of 61,413 sqm;  SM City Taytay with a GFA of 91,920 sqm, and SM Supercenter Muntinlupa with a GFA of 53,986 sqm;

Those that expanded, on the other hand, were SM City Pampanga, SM City Cebu and SM Mall of Asia.

SM Prime has earmarked P6 billion this year for the establishment of three new malls and the expansion of existing ones.  Slated for opening this year are SM Supercenter Rosales in the Northern Luzon province of Pangasinan, SM City Baliuag in Bulacan province , which is just north of Manila, and SM City Marikina in Metro Manila.

Scheduled for expansion are Metro Manila malls SM City Fairview and SM Megamall.

By end-2008, SM Prime will have a total of 33 malls in the country with a combined GFA of 4.1 million sqm.

SM Prime is a subsidiary of listed holding company SM Investments Corp., which also has interests in banking, real estate development and retail.