SM PRIME HOLDINGS HIT 18% PROFIT HIKE | Marvin Germo
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SM PRIME HOLDINGS HIT 18% PROFIT HIKE

By: Marvin Germo | February 18, 2020

18% Increase in Profit

SM Prime Holdings, Inc. had an 18% increase in earnings last 2019 to P38.1 billion. This is triggered by the growth of its mall and residences in the whole country. According to the firm, the double-digit growth in its consolidated net income rose by 17% to P56.7 billion. The total revenue last year reached P118.3 billion, with a 14% increase from the comparative year. Because of the growth of its mall operations and residential developments, SM Prime had a great time reporting its figures reflecting its performance for 2019.

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Performance of Mall Businesses

If we talk about the business segment of SM Prime, particularly the mall business, its revenues increased by 8% to P57.8 billion. The same-mall-sales growth is 7% across its mall network. The same-mall-sales growth of this company is taken as the measurement of growth in all the malls it has. Likewise, the sales from cinema and event tickets rose by 6% to P5.5 billion for 2019 while the sales from amusement, merchandise sales, and other similar revenues hiked by 15% to P39 billion. Last 2019, SM Prime ended the year with 74 malls in the country, which totaled 8.5 million square meters of gross floor area (GFA). It also closed the year with 7 malls in China with 1.3 million SQM of GPA.

Performance of Residential Business

On the other hand, the residential business of SM Prime reported an increase of 24% in revenues to P45.2 billion. This segment is being operated by SM Development Corporation (SMDC). The consolidated costs of real estate sales jumped by 17% to P20.8 billion while the operating income rose by 39% or P17.1 billion. The growth and good performance of this business segment is due to higher construction accomplishments last 2019. It was further improved by the RFO projects located in Makati and Pasay. 2019 has ended for SM Prime with P90 billion in reservation sales with unit sales of 23, 424 units.

Performance of Other Business Segments

Other business segments of SM Prime had an increase of 14% to P9.6 billion last year. This is composed of Commercial Properties Groups and SM Hotels and Convention Centers, which saw growth because of the full-year contribution of the ThreeE-Com Center office building located in Pasay, Park Inn by Radisson, and NU Mall of Asia. SM Prime had a total of 12 office buildings in 2019 and these were equivalent to 695,000 SQM of GPA. There were eight hotels, four convention centers, and three trade halls.

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