SM Prime net income up 21%

SM Prime Holdings, the property arm of the Sy Group, reported a first half net income of P14.1 billion, up 21 percent from the previous year.

Consolidated operating income grew by 33 percent to P21.4 billion during the first half.

The company raked in P46.3 billion in consolidated revenue during the period, up 13 percent from P41.1 billion.

SM Prime president Jeffrey Lim said domestic demand has been growing and this has pushed the company’s growth.

“The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results,” Lim said.

SM Prime expects the economy to continue to recover despite global headwinds.

“We are optimistic that despite the global economic slowdown, the local economy will continue to benefit from the sustained growth in remittances from overseas Filipino workers (OFWs), the business process outsourcing (BPO) industry, as well as the increase in local travel and tours activities,” Lim said.

In terms of business segments, the company’s mall revenues surged by 92 percent to P20.6 billion as mall rental income grew 80 percent during the period.

SM Prime’s mall business accounted for 44 percent of the company’s consolidated revenues.

Cinemas, event ticket sales, and other revenues grew to P2 billion from P500 million as restrictions continue to ease.

On the other hand, the residential business group, led by SM Development Corp. (SMDC), reported P18.2 billion in revenues in the first half, down 25 percent due to canceled sales as an effect of the lapse of Bayanihan Act, which gave a reprieve to unit buyers during the height of the pandemic, affecting the entire industry.

The economic uncertainty brought about by the pandemic also contributed to the decline in revenue, SM Prime said.

SM Prime’s other key businesses, which include offices, hotels, and convention centers, recorded a 49 percent growth in revenues to P4.5 billion as the company’s office business segment recorded P2.8 billion in revenues, 14 percent higher than the same period last year, while the hotels and convention centers business segment’s revenues reached P1.7 billion, 205 percent higher than last year.