Tecom group’s net profit for first nine months rises by 51% to Dhs639m

Tecom Group announced that its revenue for the first nine months of the year ending September 30 increased by 15 per cent year-on-year (YoY) to Dhs1.48bn, driven by strong growth across all business segments.

Occupancy levels for commercial and industrial assets were 83.5 per cent, registering the third sequential growth and a significant increase from year-end 2021 occupancy levels of 78.3 per cent.

The sustained growth momentum in occupancy was seen due to strong customer retention rates, and an increase in new customers across the portfolio.

New customers include Motorola Solutions, Rakuten, Dubatt and M–Glory amongst others.

The group’s net profit grew 51 per cent YoY to Dhs639m, underpinned by strong growth in revenues, lower operational expenses, and prudent financial management

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 24 per cent YoY to Dhs1.09bn, owing to revenue growth and improved revenue quality from all business segments and lower operational expenses.

On October 14, the Board of Directors recommended an interim cash dividend payment of Dhs200m (4.0 fils per share), the first payment of the proposed Dhs400m payout for the second half of 2022 in line with the dividend policy, subject to shareholder approval at the next Annual General Meeting.

Abdulla Belhoul, CEO of Tecom Group, said: “Our strong revenue and profit growth since the start of the year and our particularly remarkable performance in Q3 is a testament to the group’s ability to effectively deliver on its growth strategy to drive net asset value growth and maximise shareholder returns.

“The increase in occupancy rates across our portfolio reflects the sharp rise in demand in the commercial real estate market, underpinned by Dubai’s economic expansion and the government’s pro-growth initiatives to further improve the ease of doing business and attract top global talent and foreign direct investment. As Dubai’s largest commercial real estate owner, Tecom Group remains well-positioned to capitalise on the encouraging economic growth and positive business sentiment within the six knowledge-based economic sectors it caters to.

“Improvement in commercial rental rates and strong occupancy levels will continue to drive revenue growth across our commercial leasing properties while structural medium-term tailwinds in the industrial, construction, and logistics sector will bolster our industrial, land leasing and value-add service segments.”