TECOM Group Announces AED 293 Million Net Profit In First Quarter Of 2024

In a notable financial update, TECOM Group has reported a significant 15% year-on-year increase in its net profit, reaching AED293 million for the first quarter ending 31st March 2024. This performance is underscored by a 10% rise in EBITDA, amounting to AED439 million, with EBITDA margins holding steady at an impressive 78%. The company attributes this growth to strong top-line expansion alongside stringent cost management strategies.

Revenue for the period saw a 10% increase year-on-year, totaling AED564 million. This surge is largely due to the portfolio occupancy rate across TECOM's commercial and industrial leasing segments hitting a record 91%. The group's success in this quarter is propelled by heightened demand across all leasing and service sectors, further bolstered by a robust macroeconomic environment and supportive government initiatives.

Funds From Operations (FFO) also witnessed a notable increase, standing at AED413 million, which represents a 15% year-on-year growth. This improvement is attributed to enhanced collections and the increased performance of income-generating assets.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, shared his optimism regarding the company's quarterly performance. "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 remarked.

Belhoul also highlighted the company's exceptional occupancy rates, which have reached an all-time high of 91% across its portfolio. This achievement marks three consecutive quarters of steady growth, with some business districts nearing full capacity—a clear indicator of the market's strength.

The surge in demand is primarily driven by new customers across all six sectors that TECOM operates in, with a special emphasis on Grade A office spaces and industrial properties. Notably, the customer retention rates within the company's industrial leasing portfolio have reached an unprecedented 98%, showcasing TECOM Group's strong position in the market.

This financial briefing not only reflects TECOM Group's solid start to the year but also underscores its strategic approach to capitalizing on Dubai's economic expansion. With its diverse portfolio and commitment to quality, TECOM Group is well-positioned to continue its trajectory of growth in the coming quarters.

With inputs from WAM