TECOM H1 profit jumps 43%

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As of December 31 2023, Tecom Group's occupancy rate for the commercial and industrial portfolio stood at 89 percent.
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  • Revenue for the first six months of 2022 increased 15.8 percent year-on-year (YoY) to AED989 million on increase in occupancy rates
  • The EBITDA, or the earnings before interest, taxes, depreciation, and amortisation, for the first half of 2022 grew 22.4 percent YoY to AED723 million

TECOM Group has reported a net profit of AED428 million (US$116 million for the first half of 2022, 43.4 percent increase over the same period last year.   The company is sustaining a strong net profit growth momentum, with Q2 net profit increasing 54.1 percent YoY and 24.7 percent quarter-on-quarter (QoQ) to AED237 million.

Revenue for the first half of 2022 increased 15.8 percent year-on-year (YoY) to AED989 million on increase in occupancy rates across commercial and Industrial properties and strong revenue growth from the business and value-added service segment.

The EBITDA, or the earnings before interest, taxes, depreciation, and amortisation, for the first half of 2022 grew 22.4 percent YoY to AED723 million on top line growth and enhanced operational efficiencies across all business segments, which helped the margin improvement.

Funds from operations was AED1.11 billion over the last twelve months (Q3 2021 – Q2 2022) on continued improvement in business conditions and continued high levels of customer retention.

The net debt to EBITDA ratio has improved to 2.7x, owing to the company’s hedging strategy against rising interest rates.

“Our strong performance in the first half of the year builds on our solid performance in 2021 and underscores the strength of our well-balanced business model and the resilience of our diversified portfolio of quality, strategically located assets and value-added services,” Abdulla Belhoul, Chief Executive Officer of TECOM Group, said. 

”At the end of the period, the consolidated occupancy level at our operating assets was 82 percent, an encouraging increase from the 78 percent at the end of December 2021, reflecting positive business sentiment of our over 7,800 customers and reinforces our leadership position in Dubai,” he added. 

 

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