SM Prime posted 21% profit increase in first semester

Property giant SM Prime Holdings Inc. (SMPH) grew its first semester net profit by 21 percent to P14.1 billion from the previous year’s level, driven by a strong recovery in earnings contributed by its flagship shopping mall business amid the nationwide easing of quarantine protocols.

Philippine mall revenue surged by 92 percent to P20.6 billion in the first six months from P10.7 billion in the same period last year, SMPH said in a regulatory filing on Monday. This accounted for 44 percent of group-wide consolidated revenues. Mall rental income increased by 80 percent to 18.6 billion during the same period. The Inquirer earlier reported that SMPH had resumed charging full rental fees across its local mall network in the second quarter, ending over two years of either rental moratorium or discounts given to help tenants cope with the COVID-19 pandemic. Given the more relaxed community quarantine in major key areas, SM Prime’s cinemas, event ticket sales, and other revenues likewise surged to P2 billion in the first six months from P500 million a year ago. “The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results. We are optimistic that despite the global economic slowdown, the local economy will continue to benefit from the sustained growth in remittances from overseas Filipino workers, the business process outsourcing industry, as well as the increase in local travel and tours activities,” SMPH president Jeffrey Lim said in a press statement.