MANILA - SM Prime Holdings Inc., the country's leading mall developer, reported a rise in net income for the first 6 months of the year on the back of higher rental revenues.

In a disclosure to the Philippine Stock Exchange, the Sy-led firm said its net income reached P3.4 billion as of end-June, an 8% growth from the P3.2 billion recorded in the same period last year.

Revenues for the 6-month period rose 15% to P9.6 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) grew 13% to P6.6 billion.

"We are pleased to have met our targets for the first half of the year in spite of the ongoing global financial crisis. Our results reinforce our belief in the resilience of the Philippine economy. We remain steadfast in pursuing our growth and expansion programs in order to better serve our millions of loyal customers," SM Prime President Hans Sy said.

Rental fees accounted for the largest share of SM Prime's total revenues, increasing 17% to P8.4 billion. The company said this resulted from an "active retail environment defying weak market expectations amid an ongoing global recession."

SM Prime's 3 malls in China contributed 5% or P0.5 billion to the company's consolidated operating revenues for the first 6 months of the year. Major tenants in SM China malls include US retail giant Walmart, SM-Laiya Department Store, apparel retailer Giordano, health and beauty store chain Watsons, and fastfood restaurants McDonald's and KFC, among others.

The other growth driver was the added space from the opening of new malls. This, however, has also led to more operating expenses for the company at P4.5 billion as of end-June, a 20% rise from P3.8 billion last year.

SM Prime opened SM City Marikina, SM City Rosales, and SM City Baliwag last year, together with SM City Naga, which was opened last May. On top of these, the company also expanded SM North Edsa, SM Megamall, and SM Fairview.

In all, these new malls and expansions added 477,000 square meters to the company's total gross floor area (GFA).

SM Prime is set to open SM City Rosario in Cavite, and SM Supercenter Pamplona in Las Pinas later this year. By year-end, the company expects to have 36 malls in the Philippines, with an estimated GFA of 4.9 million square meters.

Meanwhile, SM Prime's cinema ticket sales during the first half grew 5% to P0.93 billion due to a number of local and foreign blockbuster movies aired during the period.