Tecom, a Dubai zones operator, saw a 24% increase in net profit in H1 2024 to Dh603 million
Published Date: 27th Aug, 2024
Tecom, a Dubai zones operator, saw a 24% increase in net profit in H1 2024 to Dh603 million
company Tecom Group PJSC in the Dubai zones reported a 24% increase in net income, to Dh 603 m from Dh485 million in the previous year. This followed Dh1.1 billion in revenues, which increased by 9% annually. Tecom presently has occupancy rates above 92%, according to a Friday announcement from the DFM-listed company.
According to the statement, EBITDA climbed by 9% year over year in the first half of the year to Dh 896 million, driven mostly by general revenue growth and operational optimization.
A Dh400 million interim dividend of cash payment for H1 2024 has also been agreed by the group's board of directors, and it will be given out by September of that same year. The group has committed to paying Dh 800 million yearly through September 2025 by the authorized dividend policy.
Tecom Group's contribution to facilitating Dubai's knowledge-based economy by drawing international and local businesses from six key industries to its ten specialized business areas is reaffirmed by the performance, which comes after the company's strong first-quarter results.
At Dh 840 million, the group's funds from operations (FFO) saw a strong year-over-year growth of 24%.
Chairman of the Supervisory Board of Tecom Group Malek Al Malek commented on the outcomes, saying, "The Group's first-half financial performance demonstrated the achievement of our prudent handling of capital and prospective business strategy."
According to Al Malek, "The Tecom Group Board authorized an interim dividend that will be distributed the amount of Dh400 million to investors for the first portion of this year in acknowledgment of this achievement." Moreover, Al Malek stated that the operator will keep generating sustainable shareholder value and is dedicated to bolstering its offering.
Levels of occupancy
Over 92% of Tecom Group's business and industrial assets were occupied in the first half of 2024, an increase of 5% from the previous year.
Additionally, it stated that in H1 2024, occupancy rates throughout the land portfolio reached 96%, indicating an 11% year-over-year increase. The group's 91% retention rate mirrored the rise in overall occupancy. During this time, Tecom added over 1,000 new clients to its portfolio in the business, manufacturing, and land sectors, including leaders in the region and beyond.
Landmarks for Expansion
The organization opened the first L'ÉCole, School of Jewelry Arts permanent campus in the Middle East earlier this year at Dubai Design District (d3).
Along with these major new clients, Dubai Industrial City now boasts a parts distribution center that serves as an industry hub for innovation in the automotive industry thanks to Arabian Automobiles Company, the flagship business of the AW Rostamani Group, and Neelkanth Cables, Dubatt Battery, and MD Pharma Factory.
Date: 27th Aug, 2024
