SM Prime’s net income rises by 17%

SM Prime Holdings Inc. registered a consolidated net income growth of 17 percent in 2018 to P32.2 billion from P27.6 billion of the previous year.

Consolidated revenues grew by 14 percent to P104.1 billion in 2018 from P90.9 billion in 2017, while consolidated overall operating income improved by 19 percent to P48.3 billion in 2018 from P40.6 billion of the previous year.

SM Prime recorded a 16 percent increase in its net income for the last quarter of 2018 to P8.7 billion from P7.5 billion of the previous year. The company’s consolidated revenue in the fourth quarter grew by 13 percent to P29.5 billion from P26.2 billion of the fourth quarter of 2017.

“The successes and achievements we are reaping today are the hard work, strategy and partnerships we built five years ago when we consolidated all the key property companies of SM Group under SM Prime. Driven by our goal to deliver more innovative and sustainable lifestyle cities, SM Prime is aiming to sustain this growth trajectory in the coming years,” SM Prime president Jeffrey Lim said.

Mall revenues

SM Prime’s mall revenues rose by 11 percent to P59.3 billion in 2018 from P53.2 billion in 2017. Mall rental income grew by 11 percent to P50.5 billion from P45.3 billion of the previous year. The increase in revenue was due to rising contribution of rentals from new and expanded malls that were launched mostly in the developing provincial areas of the Philippines from 2017 to 2018 such as SM CDO Downtown Premier, S Maison, SM City Puerto Princesa, SM Center Tuguegarao Downtown, SM City Urdaneta Central, SM City Telabastagan, SM City Legazpi and SM Center Ormoc. Same-mall sales growth was at eight percent across all mature malls.

SM Prime cinema and event ticket sales improved by nine percent to P5.2 billion in 2018 from P4.8 billion in 2017. Revenues from amusement and merchandise sales also increased by 14 percent to P3.6 billion in 2018 from P3.1 billion in 2017. The revenue growth came from additional outlets opened in new malls. Mall operating income improved by 13 percent to P32.2 billion in 2018 from P28.4 billion in 2017, while operating margin moved up to 54 percent in 2018 from 53 percent of the previous year.

SM Prime’s residential group, led by SM Development Corp., reported a revenue growth of 22 percent to P36.5 billion in 2018 from P30.0 billion in 2017. Operating income improved by 38 percent to P12.3 billion from P8.9 billion. /