Robust Growth in Net Profit and Revenue
Dubai-based TECOM Group has announced its impressive second-quarter and first-half financial results for 2024, with immense increases in net profit and revenues. For the H1 2024 period, group net profit increased by 24 percent to AED 603 million, with a 9 percent year-over-year increase in revenues to AED 1.1 billion. The performance was anchored on solid Q1 results and underlined TECOM Group’s contribution to supporting Dubai’s knowledge-based economy through its specialised business districts.
PC: Arabian Business
Key Financial Metrics
EBITDA Growth: 9% YoY increase in EBITDA to AED 896 million during H1 2024.
Occupancy Rates: TECOM Group recorded an increase in occupancy levels to over 92% across its Commercial and Industrial portfolio, representing 5% year-on-year growth. This was slightly surpassed by the Land portfolio, which stood at 96% and recorded an impressive 11% year-on-year increase. A healthy retention rate of 91% has also been sustained by the Group, further supporting its occupancy growth.
Q2 2024 Performance Highlights
TECOM Group revenues for Q2 2024 were up 9% year-over-year to AED 584 million due to continued high occupancy rates, increasing demand for the Group’s offerings, and net profit jumping 35% year-over-year to AED 311 million for Q2 2024. The core driver is the increase in demand from the Commercial, Industrial, and Land segments against the backdrop of Dubai’s fast-paced commercial real estate market.
Q2 2024 EBITDA: The Group posted 7% YoY growth in EBITDA to AED457 million, driven by new customer acquisition, improving rental rates, and meaningful revenue retention.
Strategic Developments and Dividend Policy
Malek Al Malek, Chairman of the Board of TECOM Group, praised the role that the pro-business framework in the UAE and Dubai plays to boost the local economy. He further clarified that the TECOM Group would leverage Dubai’s strong fundamentals in an effort to attract companies from around the world and the region, thus contributing to the growth of Dubai’s knowledge economy.
The Board has agreed to an interim dividend distribution of AED400 million for H1 2024, payable by September 2024, as part of the Group’s approved dividend policy. The Group remains committed to an overall dividend payout of AED800 million annually until September 2025.
CEO’s Remarks on Performance and Outlook
Abdulla Belhoul, CEO of TECOM Group, said: “The Group delivered exceptional performance with sustained high occupancy across its Grade-A portfolio in the six priority sectors, which very much represents the Group’s commitment to deliver top-quality offerings.” He reiterated that Dubai remains a global beacon for leading innovators and investors and stated that TECOM Group will continue leveraging this appeal of the city to generate long-term value for shareholders.
With these, therefore, TECOM Group has dominated the financial performance completely for H1 2024 and Q2 2024 with strategic success and further consolidated its position as a main player in the economic landscape of Dubai.
