SM Prime’s First Half Net Income Down 46%

SM Prime Holdings Inc. (SMPH) reported consolidated income for the first half of the year 2020 of ₱10.4 billion, from ₱19.3 billion for the same period last year, totaling a 46% drop in net income.

SMPH also reported consolidated revenue of ₱43.7 billion from ₱57 billion, 23% lower from 2019.

SMPH reported the Philippine malls’ rent income at ₱13.1 billion, from ₱23.3 billion, a 44% drop.

Mall revenue was reported at ₱14.4 billion from ₱28.1 billion.

Jeffrey Lim, SM Prime president said “The first half of 2020 has been one of the most challenging periods we’ve faced as a company. With the government maintaining the implementation of quarantine protocols in most key areas in the Philippines where our businesses are, SM Prime is committed to sustaining its operations while adhering to the strict safety measures implemented by the government and continue providing convenience to our customers,”

SMPH said it has focused on online strategy by introducing an e-commerce platform that allows tenants to complement physical stores inside their SM malls by providing online interface and pick-up points for online sales for its tenants.

The company also promotes cashless transactions in their malls through digital payment methods, provides extended dining areas that are regularly sanitized, and partners with local farmers and public transport services to supply fresh produce while transporting goods and people safely to alleviate customer safety concerns.

Although not all financial news has been bad for SMPH.

SMPH’s residential sector, led by SM Development Corp. (SMDC), reported ₱23.7 billion in revenue from ₱21.4 billion year-on-year, an 11% increase.

SMPH’s commercial properties business’ revenue has grown 16% to PHP2.5 billion in the first half of 2020 as well.