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Philippines: SM Prime’s 9-month net income up 9% despite revenue slump
MANILA, Philippines — SM Prime Holdings Inc. reported higher earnings in the first nine months, although a revenue slump during the period showed the property giant is not yet out of the coronavirus hole.
Consolidated net income stood at P15.6 billion in the January-September period, up 9% year-on-year, the Sy-led company said in a statement sent to the stock exchange on Monday.
SM Prime is yet to release its full financial report. While its bottom-line was up, the company’s nine-month consolidated revenues sagged 6% on-year to P56.8 billion as both its residential and mall businesses underperformed.
Revenues from SM Prime’s residential segment SMDC, which accounted for 56% of the company’s consolidated topline, stood at P32.1 billion in the first nine months, down 6% compared with the same period last year. But the company said SMDC’s reservation sales grew 14% year-on-year to P76.3 billion during the period.
Meanwhile, consolidated revenues of SM Prime’s mall business amounted to P15.8 billion in the first three quarters of the year, down 14% on an annual basis. The company explained that tighter restrictions in August due to Delta variant-fueled surge in infections affected the operations of its shopping malls and tempered consumer spending.
But the lackluster performance at home was offset by SM Prime’s malls in China, which posted a nine-month revenue of RMB 0.59 billion, up 28% on-year.
“As the country continues to survive the pandemic, SM Prime will remain optimistic by providing support to the government as well as convenience, services and entertainment to its customers,” Jeffrey Lim, company president, said.
Shares in SM Prime inched up 0.83% on Monday to close at P36.3 apiece.
Source: https://www.philstar.com/business/2021/11/08/2139879/sm-primes-9-month-net-income-9-despite-revenue-slump