SM Prime Holdings Inc. reported a 15% jump in consolidated income to P9.1 billion in 2011 from P7.9 billion in 2010, mainly due to its new shopping malls and healthy store rental growth.
In statement on Friday, SM Prime said its revenues for 2011 also rose by 13% to P26.9 billion.
The country's biggest shopping mall developer and operator attributed its "better-than-expected" performance to added capacity from its new malls in the Philippines and steady same-store rental growth.
SM Prime's results include operations from its SM malls in Xiamen, Jinjiang, Chengdu and Suzhou in China. The 4 shopping malls in China saw its net income doubling to P889 million in 2011, from P428 million in 2010.
The company attributed its rise in profits to tighter grip on operating expenses and the use of innovative energy conservation methods.
"SM Prime’s noteworthy performance in 2011, which was achieved in spite of tempered economic progress, clearly shows that the business formula the company has adopted is resilient and built for sustainable growth. Now that there is better optimism on the country’s prospects, the company is even more eager to pursue its growth and expansion plans, as a fitting tribute to all our stakeholders, who we sincerely thank for loyally supporting us all through these years," SM Prime President Mr. Hans T. Sy said, in a statement.
The company's consolidated rental revenues, which account for 85% of the total revenues, rose by 14% to P22.8 billion. This was attributed to the new rental space from its shopping malls in Tarlac, San Pablo, Calamba, Novaliches and Masinag.
Ticket sales at the SM Cinemas jumped by 10% to P3.05 billion in 2011, thanks to blockbuster hits "Transformers 3," "Praybeyt Benjamin," "Harry Potter and the Deathly Hallows Part 2," "No Other Woman," and "Twilight Saga: Breaking Dawn Part 1."
In 2012, SM Prime is opening SM City Lanang in Davao City, SM City General Santos in Southern Mindanao, SM City Consolacion in Cebu, SM City San Fernando in Pampanga, and SM Chongqing in China.
The company is hoping to open 3-4 new malls in the Philippines every year, while it plans to open 1 mall a year in China. In 2014, it is scheduled to open a 540,000-sqm mall in Tianjin.
By the end 2012, SM Prime will have 46 malls in the Philippines and five in China with an estimated combined GFA of 6.3 million sqm.
