Monday, May 5, 2014

Rental revenues lift SM Prime Q1 earnings 11% to P4.58B



Net earnings of Sy-led property giant SM Prime Holdings Inc. jumped by 11 percent in the first three months of 2014, mainly on higher rental revenues from the new malls, the company reported Monday. Consolidated net income rose to P4.58 billion from P4.11 billion in the same comparable period last year, SM Prime said in a disclosure to the Philippine Stock Exchange. Consolidated revenues improved by 3 percent to P15.35 billion from P14.95 billion. 

“We are off to a good start this year, maintaining a steady growth for the first quarter of 2014. As we move towards our five-year roadmap, we are very optimistic that SM Prime will achieve its targets,” President Hans Sy noted in the disclosure. Rental revenues – which account for 56 percent of the total – expanded by 12 percent to P8.56 billion from P7.63 billion, fed by seven new malls that opened in 2012 and 2013. Real estate sales dropped 17 percent to P5.02 billion from P6.01 billion as only two projects were launched in 2012. Cinema ticket sales grew 40 percent to P1.06 billion from P0.76 billion, largely from digital movie houses in the new malls. Amusement and other revenues also increased by 30 percent to P710 million from P546 million, driven by new amusement rides in the Sky Ranch in Tagaytay and the reopening of ice skating rink in SM Megamall. 

Consolidated operating expenses increased by 11 percent to P5.75 billion from P5.18 billion. “Same-store mall growth in operating expenses is 7 percent, and the balance is attributable to the opening of new malls and expansions,” SM Prime noted in a separate statement e-mailed to reporters. Last April 15, SM Prime officials bared plans to spend P400 billion in capital expenditures over the next five years as part of the business strategy to double revenues and income as a consolidated property company under the Sy group of companies. 


Source:  GMA News

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