SM Investments 2007 profit surges 14% to P12B

MANILA, Philippines- SM Investments Corp., the holding firm of the SM group of companies, on Monday said profits rose 14 percent to P12 billion in 2007 due to revenue growth across all its units. Excluding extraordinary items, the firm said its net recurring income grew 25 percent. The company has four major areas of interest--banking and finance, retail merchandising, property, and mall operations. SM Investments owns Banco de Oro-EPCI, China Banking Corp., the SM chain of malls, SM supermarkets and department stores, and various property firms recently consolidated under Shoemart Inc. In a statement to the Philippine Stock Exchange, SM Investments said consolidated revenues grew by 38 percent to P122.5 billion, as against 2006's P88.7 billion. Retail revenues expanded 43 percent to P103.2 billion. Rental income, derived mostly from shopping mall operations, grew 13 percent to P11.1 billion, while revenues arising from cinema ticket sales and amusement increased 13 percent to P2.5 billion. “The whole of 2007 proved to be satisfactory for SM, as the company attained its objectives for the year. All of the company’s core businesses continued to grow and deliver encouraging results, on the back of an improving domestic economy, thus enabling SM to benefit from the business synergies created by its subsidiaries," SM chief financial officer, Mr. Jose T. Sio said. SM Investments said BDO and ChinaBank accounted for 31 percent of the of total group income, while shopping malls accounted for 30 percent. Retail merchandising and property contributed 28 percent and 11 percent, respectively. - GMANews.TV