SM Prime net profit surges 17% to P32.2B in 2018

Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 11 Feb 2019 16:15:45 +0000

SM Prime Holdings Inc. saw its net income jump by 17 percent to P32.2 billion last year, from P27.6 billion in 2017, on the back of higher revenues.

In a disclosure on Monday, the company reported that consolidated revenues had risen by 14 percent to P104.1 billion from P90.9 billion in 2017.

Consolidated operating income, meanwhile, improved by 19 percent to P48.3 billion year-on-year.

In the fourth quarter alone, SM Prime’s net income increased by 16 percent to P8.7 billion from P7.5 billion while consolidated revenues hit P29.5 billion, 13 percent higher than the same quarter in 2017.

On a full-year basis, SM Prime’s mall business racked up P59.3 billion in revenues, higher by 11 percent. Growth was attributed to the rising contribution of rentals from new and expanded malls that were launched mostly in the developing areas of the Philippines from 2017 to 2018.

Mall rental income grew by 11 percent to P50.5 billion while revenues from cinema and event ticket sales increased by 9 percent to P5.2 billion. Revenues from amusement and merchandise sales increased 14 percent to P3.6 billion.

SM Prime currently has 72 malls nationwide with a combined gross floor area (GFA) of 8.3 million square meters (sqm). Seven others located in China have a GFA of 1.3 million sqm.

For the residential segment, SM Prime said unit SM Development Corp. (SMDC) reported reservation sales growth of 25 percent of P72.3 billion from P57.8 billion. In terms of unit sales, the increase stood at 23 percent or 21,157 from 17,259.

SMDC plans to launch between 15,000 to 18,000 residential units this year.

For the rest of its businesses, SM Prime said revenues grew by 7 percent to P8.4 billion from P7.9 billion in 2017.

SM Prime has 11 office buildings at present with a total GFA of 623,000 sqm. This year, it plans to launch the NU Tower at the Mall of Asia Complex in Pasay City. Also in the launch pipeline are FourE-Com Center and two Park Inn by Radisson hotels.

SM Prime shares rose by 65 centavos on Monday to finish at P39.30 each, bucking the Philippine Stock Exchange index’s 0.12-percent drop.

The post SM Prime net profit surges 17% to P32.2B in 2018 appeared first on The Manila Times Online.

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