Tecom Group H1 2022 net profit rises 43.4% to Dhs428m

Tecom Group has announced its Q2 and H1 2022 financial results. Revenue for the first six months of 2022 increased 15.8 per cent year-on-year (YoY) to Dhs989m based on the increase in occupancy rates across commercial and industrial properties and strong revenue growth from the business and value-added service segment.

Earnings before interest, taxes, depreciation and amortisation or EBITDA for the first six months of 2022 grew 22.4 per cent YoY to Dhs723m on top-line growth and enhanced operational efficiencies across all business segments, which helped the margin improvement.

Net profit for H1  jumped 43.4 per cent YoY to Dhs428m due to the double-digit growth in revenue, enhanced operational efficiencies and also due to lower total financing costs.

The company is sustaining a strong net profit growth momentum, with Q2 net profit increasing 54.1 per cent YoY and 24.7 per cent quarter-on-quarter (QoQ) to Dhs237m.

Funds from operations stood at Dhs1.11bn over the last twelve months (Q3 2021 – Q2 2022) based on continued improvement in business conditions and high levels of customer retention.

The net debt to EBITDA ratio has improved to 2.7 times, owing to the company’s hedging strategy against rising interest rates.

Abdulla Belhoul, CEO of Tecom Group, said: “Our strong performance in the first half of the year builds on our solid performance in 2021 and underscores the strength of our well-balanced business model and the resilience of our diversified portfolio of quality, strategically located assets and value-added services.

“At the end of the period, the consolidated occupancy level at our operating assets was 82 per cent, an encouraging increase from the 78 per cent at the end of December 2021, reflecting the positive business sentiment of our over 7,800 customers and reinforcing our leadership position in Dubai. Our performance also reflects the constructive demand-supply dynamics of the commercial and industrial real estate market.”

He added: “We are optimistic about our ability to sustain a steady increase in our occupancy levels and high customer retention levels for the upcoming period. This will add further stability to our revenue and cash flow for the midterm. Furthermore, our well-defined strategy for growth will enable us to take advantage of a broad spectrum of growth drivers from secular trends pertaining to each of the six vital sectors we cater to.

“Our scale, resilient financial performance through various market cycles, strategic land bank, experienced team, and current strong leverage position will enable us to swiftly capture those opportunities, further supporting long-term sustainable growth and helping to unlock additional value for our shareholders.”

In recent news, Tecom Group was successfully listed on the Dubai Financial Market (DFM), beginning its first day of trading on July 5 under the ticket symbol ‘Tecom’.

The group has raised approximately Dhs1.7bn through an initial public offering (IPO). The final offer price of the global offering was Dhs2.67 per ordinary share and the company has floated 625 million (625,000,000) ordinary shares, which is 12.5 per cent of its issued share capital.

Read: Tecom Group commences trading on Dubai Financial Market