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TECOM reports Dh293 million net profit in Q1 2024

TECOM reports Dh293 million net profit in Q1 2024
3 May 2024 13:02


TECOM Group announced on Friday a 15% year-on-year (YoY) increase in net profit to Dh293 million for the three months ended March 31, 2024 (Q1).

EBITDA for the first three months of the year increased 10% YoY to Dh439 million, while EBITDA margins remained at a healthy 78%.

TECOM stated that EBITDA rose on the back of robust top-line growth as the Group maintained prudent cost controls.

Revenue increased 10% YoY to Dh564 million as the portfolio occupancy rate across the commercial and industrial leasing portfolio reached an all-time high of 91%, driven by solid demand across all leasing and service segments as business activity across various sectors strengthened. The robust macroeconomic backdrop and supportive government initiatives and measures underpinned this growth.

Funds From Operations (FFO) stood at Dh413 million, representing a 15% YoY increase on improved collections and increased performance of income-generating assets.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, "We are starting the year on a very strong footing. We achieved a robust financial and operational performance in the first quarter, building on our successes in 2023. This stands as a testament to our ability to leverage our diverse portfolio to satisfy the rising demand for quality commercial spaces and solutions spurred by Dubai's broad-based economic growth."

He added that the company is experiencing a surge in demand, with occupancy rates hitting a record high of 91% across its portfolio. This follows three consecutive quarters of steady growth. Some business districts are nearing full capacity, highlighting the strong market.

New customers across all six sectors are driving this growth, with a particular focus on Grade A office spaces and industrial properties. The customer retention rates within the company's industrial leasing portfolio reached a historic 98%.

Source: WAM
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