TECOM Group ’s Q1 2023 net profit grows 34% to AED 255 million

TECOM Group ’s Q1 2023 net profit grows 34% to AED 255 million

DUBAI, 2nd May, 2023 (WAM) - TECOM Group PJSC (DFM: TECOM), ( The Group), the creator of specialised business districts and vibrant communities, today announced its financial results for its fiscal 2023 first quarter ended 31 March 2023. The Group delivered a strong financial and operational performance, reporting a 6% year-on-year (YoY) increase in revenues to AED 514 million and a 34% YoY increase in net income to AED 255 million.

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.”

With a YoY increase of 6%, the company's revenue for Q1 2023 reached AED 514 million, primarily driven by increased occupancy rates in commercial and industrial spaces. Furthermore, the company's EBITDA saw a 14% increase to AED 399 million due to top-line growth and lower operational expenses.

TECOM Group's net profit for Q1 2023 grew an impressive 34% YoY to AED 255 million, thanks to the company's sustained growth, enhanced operational efficiencies, and strong revenue generation across all segments. Additionally, funds from operations (FFO) increased by 44% compared to the same period last year, reaching AED 359 million, fueled by strong collections and high customer retention rates.

During Q1 2023, TECOM Group continued to support various industries driving Dubai's economic growth and diversification agenda. The company witnessed several operational activities, including AstraZeneca's announcement of moving to Dubai Science Park, the successful launch of Dubai Fashion Week, and the inauguration of the first regional campus of M Normandie French Business School at Dubai Knowledge Park.

The quarter also saw the opening of THRYVE™ factory, the first 100% plant-based meat factory in the Middle East, and the announcement of Silver Line Gate Group's AED 200 million manufacturing facility in Dubai Industrial City, aligning with the UAE's food security agenda and Make it in the Emirates initiative. Additionally, Al Khayyat Investments broke ground on its largest fulfillment center to date in Dubai Industrial City.

TECOM Group shareholders approved a dividend payment of AED 200 million, distributed in April 2023, following the AED 200 million pay-out in November 2022, taking the total dividend payment for H2 2022 to AED 400 million. TECOM Group is committed to paying a total dividend amount of AED 800 million per annum for the first three years of being a listed company, with the next dividend payment due in September 2023, subject to shareholder approval, covering the first half of 2023.