Dubai, UAE — TECOM Group Wednesday announced a record AED 2.2 billion ($598 million) in revenue, representing a 10 percent year-on-year (YoY) increase, and a 49 percent YoY increase in net profit to AED1.1 billion for the financial year ended 31st December 2023 (FY 2023).
The Group said the strong financial performance was driven by robust demand from new and existing customers operating across all six sectors the Group serves, underpinned by Dubai’s resilient economic performance, pro-growth and diversification government initiatives, and bullish consumer and business confidence.
The company has recommended a dividend payout of AED400 million to the company’s shareholders for the second half of 2023.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, stated, “What drove occupancy rates to 89 percent across our portfolio was strong demand for assets in all sectors, especially those catering to customers in the industrial sector.”
“While the majority of our revenue is attributed to retained customers, we are also pleased with an almost 15 percent increase in the number of new customers from 2022,” he said.
Revenue increased by 10 percent YoY to AED2.2 billion, the highest on record for the Group, driven by elevated occupancy rates on the back of high customer retention rates and an increase in the number of new customers across the Group’s portfolio.
The lease of industrial lands witnessed a strong demand in 2023, as the occupancy rate rose to 94 percent, compared to 81 percent in 2022.
Net profit jumped 49 percent YoY to an all-time high of AED1.1 billion, driven by strong broad-based growth across the business and lower operational and financial costs, owing to the Group’s ongoing efforts to enhance operations and reduce costs to complement its funding needs and growth plans.