SM Prime profit up 21% in H1

SM Prime Holdings Inc. on Monday said its income for the first half rose 21 percent to P14.1 billion from the previous year’s P11.6 billion due to the recovery of its core shopping mall business.

Revenues grew 13 percent to P46.3 billion from last year’s P41.1 billion.

“The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results. 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, the business process outsourcing industry, as well as the increase in local travel and tours activities,” SM Prime President Jeffrey Lim said.

Revenues of SM Prime’s domestic shopping mall business, which accounts for 44 percent of the company’s consolidated revenues, almost doubled to P20.6 billion for the period from the previous P10.7 billion. The increase is due to the 80-percent growth in mall rental income to P18.6 billion from P10.3 billion last year.

Given the more relaxed community quarantine in major key areas in the Philippines during the reported period, SM Prime’s cinemas, event ticket sales and other revenues grew to P2 billion from the previous P500 million.

Meanwhile, SM Prime’s China mall business revenue reached RMB0.39 billion for the period, flat from the previous year.

SM Prime’s residential business group, led by SM Development Corp. (SMDC), reported P18.2 billion in revenues, 25 percent lower than last year’s P24.5 billion partly due to canceled sales as an effect of the lapse of the Bayanihan Act, which gave a reprieve to unit buyers during the height of the pandemic.

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

SMDC’s reservation sales grew by 49 percent in terms of unit sales to 12,327 this year from 8,269 last year. This translates to an 8-percent increase in reservation sales to P59.4 billion in January to June from P55.1 billion last year.

SM Prime’s other key businesses, which include offices, hotels and convention centers, recorded a 49-percent growth in revenues to P4.5 billion from P3 billion last year.

The company’s office business segment recorded revenues of P2.8 billion, 14 percent higher than last year, while the revenues of its hotels and convention centers business segment tripled to P1.7 billion.

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