SM Prime Q2 net profit climbs 11%

ABS-CBN News

Posted at Aug 04 2010 09:56 AM | Updated as of Aug 04 2010 05:56 PM

MANILA, Philippines - Higher revenue from mall rents boosted  SM Prime Holdings, Inc.'s second quarter net profit, rising by 11% from a year ago to P1.9 billion.

In the six months to June, the mall developer's revenue for the quarter edged up by 19% to P5.9 billion.

For the first half, its consolidated earnings climbed by 10% to P3.8 billion from P3.4 billion during the same period in 2009.

"The encouraging results delivered by SM Prime validate our positive sentiment on the economy, which is further bolstered by robust consumer spending," said SM Prime President Hans Sy.

The Philippine economy which grew in the first quarter at a much faster pace than expected at 7.3% on strong remittances, exports and consumption, is expected to achieve a full year growth of 5-6%.

"In that light, we look to the second half of the year with more optimism in executing our expansion plans," said Sy.

For the first half of 2010, SM Prime's consolidated rental revenues continued to contribute the biggest share, growing by 13% to P9.5 billion, with the opening of new malls, while expansion projects in existing malls also helped raise revenue growth.

SM Prime shares were 0.2% higher at P10.76 in mid-trading on Wednesday.