TECOM Group’s Q1 2023 net profit rises 34% to Dhs255m

TECOM Group announced its financial results for Q1 2023, stating it had delivered a strong financial and operational performance.

The group reported a 6 per cent year-on-year increase in revenues to Dhs514m and a 34 per cent YoY increase in net income to Dhs255m. Earnings before interest, taxes, depreciation and amortisation was Dhs399m, reflecting a 14 per cent rise over last year.

Net profit was Dhs255m, marking a 34 per cent rise over the same period last year. It was underpinned by strong growth in revenues, enhanced operational efficiencies and sustained growth across all business segments.

Funds from operations reached Dhs359m, a 44 per cent increase on Q1 2022, due to strong collections and continued high levels of customer retention.

Abdulla Belhoul, chief executive officer, TECOM Group, said: “TECOM Group’s solid first quarter results, are not just a testament to the success of our long-term growth strategy, but also a reflection of the underlying business confidence in Dubai and the thriving business ecosystem in the emirate.

The sustained growth in our occupancy demonstrates the continued demand for our specialised assets and reaffirms Dubai’s position as a global hub for investment, innovation, and entrepreneurship. We believe we are well positioned to continue to capitalise on the booming real estate market in Dubai.

Looking ahead, our outlook for the rest of the year is positive, particularly with the prospect of higher rental rates, continued growth in occupancy and the immense potential that the city offers to businesses of all sizes and from all sectors. We will maintain our focus on maximising value to our shareholders and all our stakeholders.”

TECOM Group shareholders approved a dividend payment of Dhs200m, which was paid in April 2023. This follows a Dhs200m pay-out which was distributed in November 2022, taking the total dividend payment for the second half of 2022 (H2) to Dhs400m.

The  group is committed to paying a total dividend amount of Dhs800m per annum over the first three years of being a listed company.

The next dividend payment will be distributed in September, subject to shareholder approval, and will cover the first half of 2023.

TECOM Group today announced its financial results for its fiscal 2023 first quarter, delivering a strong financial and operational performance. The Group reported a 34% YoY increase in net income to AED 255 million as occupancy rates increase for fifth consecutive quarter. To… pic.twitter.com/9BD1dJxqDm

— TECOM Group (@TECOMGroupDubai) May 3, 2023

TECOM Group’s key operational highlights

In Q1…

• AstraZeneca announced its intention to move to Dubai Science Park with new sustainable offices ahead of COP28.
• The successful launch and first edition of Dubai Fashion Week, which recorded a 55 per cent increase in RSVP’s compared to the 21^st edition of Arab Fashion Week in March 2022.
• M Normandie French Business School inauguration of its first regional campus at Dubai Knowledge Park.
• The opening of THRYVE factory, the first 100 per cent plant-based meat factory in the Middle East, in Dubai Industrial City.
• Silver Line Gate Group (regional suppliers of milk powder) announcement to build an Dhs200m manufacturing facility at Dubai Industrial City in line with Dubai Economic Agenda D33, the UAE food security agenda and Make it in the Emirates.
• Al Khayyat Investments broke ground on its largest fulfillment centre to date in Dubai Industrial City.