SM Prime Grapples With Coronavirus Pandemic As Company Revenue Down 46%
One of the largest mall operators in the Philippines have been heavily affected by Covid-19.
The first SM "Supermall" in the Philippines is SM City North EDSA in Quezon City. Ramon Velasquez / CC-BY-SA
During pre-pandemic, one of the largest mall operators in the Philippines was dealing with thousands of mall go-ers everyday. Not only does it own some of the most popular shopping malls in the world, it also operates retail stores and real estate developments such as apartment buildings, penthouses, and condominiums.
SM Prime Holdings, Inc. a subsidiary of its parent organization, SM Investments Corporation, on August 4, posted a first-half net income of P10.4 billion, down 46% percent as the Coronavirus Pandemic wreaked havoc on their revenue.
On the same day, the company's President, Jeffrey Lim, said that the first half of 2020 has been one of the most difficult periods for them. Mr. Lim was appointed as the President of SM Prime in October 2016 and has been reappointed since then.
"The first half of 2020 has been one of the most challenging periods we've faced as a company," Mr. Lim said. "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 continuing to provide convenience to our customers," He added.
Due to lower shopping mall revenue, SM Prime's rental income from its malls dropped 44% percent to P13.1 billion, from last year's P23.3 billion. It declined by 49 percent to P14.4 billion, from P28.1 billion a year ago.
The company waived rental and gave discounts to tenants since the start of the quarantine measures in mid-March, thus losing P11 billion in revenues as of end-June 2020.
SM Prime Holdings, Inc. is seeking to "innovate and strategize" to recover from the unprecedented effects of the Coronavirus pandemic as it assured continued support to tenants as well as assistance to various stakeholders across the country.
Big shopping malls have always been a big part of the Filipino culture, ever since the late Henry Sy Sr. started creating large shopping malls that he called "SM" in the Philippines. He was one of the largest business magnates in the country.