SM Prime Full Year 2012 Net Income Grows 16% to Php10.53 billion
(18 February 2013. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime), the Philippines' dominant shopping mall developer and operator, exceeded its 2012 profit growth target for a second straight year as it registered a 16% increase in consolidated net income to Php10.53 billion for the full year, as compared to Php9.1 billion in 2011. Total revenues for the year rose by 14% to Php30.73 billion. EBITDA increased 12% to Php20.7 billion, for an EBITDA margin of 67%. These results include the operations of the five SM malls in China, in the cities of Xiamen, Jinjiang, Chengdu, Suzhou, and Chongqing.
SM Prime's better-than-expected performance was largely due to rentals from new SM Supermalls launched in 2011 and 2012 coupled with a robust same-store rental growth of 8%. Moreover, SM Prime's shopping malls in China continued to perform well, with net income amounting to Php1.10 billion in 2012, a 24% increase from Php0.89 billion in 2011.
SM Prime President Mr. Hans T. Sy said, “We are very pleased to end 2012 with excellent results. We are confident that the Philippine growth story, which we saw unfold last year will continue in 2013. In line with this, we will proceed with our aggressive expansion plans and continue to pursue new opportunities for growth. We sincerely thank all our stakeholders for another year of remarkable growth and for the confidence they have entrusted upon us.”
For full year 2012, SM Prime's consolidated rental revenues contributed 84% to the total, and grew by 14% to Php25.90 billion. New rental space came from SM City Olongapo, SM City Consolacion, SM City San Fernando, SM City General Santos, SM City Lanang, and SM Chongqing.
Operating expenses for full year 2012 increased by 14%, to Php13.99 billion, largely due to expenses related to mall expansion. Income from operations posted a 14% growth from Php14.62 billion in 2011 to Php16.73 billion in 2012.
Cinema ticket sales from January to December 2012 increased by 14% due to a series of both local and international blockbuster movies shown during the period namely “The Avengers”, “Twilight Saga: Breaking Dawn Part II”, “The Amazing Spiderman”, “This Guy's in Love with U Mare”, “The Mistress”, and “Sisterakas”. In addition, the conversion of all cinema screens to digital and the roll-out of cinema turnstile system have helped make the cinema viewing experience more convenient for movie-goers.
For 2013, SM Prime is scheduled to open SM Aura Premier in Taguig City and SM Cauayan in Isabela. SM Megamall will be expanded with the construction of Building D.
By the end of this year, SM Prime will have 48 malls in the Philippines and five in China with an estimated combined GFA of 6.7 million sqm.
For further inquiries:
Ms. Mary Christine Q. Tan
Investor Relations Senior Manager
SM Prime Holdings, Inc.
Tel. no.: 831.1000 loc. 7802