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Dubai's Tecom Group approves Dh200 million interim cash dividend
Company cashes in on sharp rise in demand in the commercial and industrial real estate market in Dubai
The Tecom media cluster. Tecom Group reported strong financial performance for the first nine months of 2022. - File photo
Tecom Group on Tuesday announced shareholder approval of the proposed interim dividend payment of Dh200 million (4.0 fils per share) following its first General Assembly Meeting since listing on the Dubai Financial Market (DFM) on July 5, 2022.
In a statement, the company said Dh200 million cash distribution is in line with the group's previously announced dividend policy of distributing Dh800 million annually, to be distributed in semi-annual payments, to shareholders through to October 2025. All matters related to future dividend distribution will be subject to Board of Director's recommendation and shareholders' approval.
Malek Al Malek, chairman of Tecom Group, said Tecom Group has sustained its strong performance since the start of the year in line with the sharp rise in demand in the commercial and industrial real estate market in Dubai.
"This buoyancy is underpinned by the economic expansion and the government's initiatives to promote further growth and excellence, enhance the ease of doing business and attract top global talent and foreign direct investment," he said.
"As per the board of directors' recommendation and the subsequent approval of our shareholders, we are delighted to announce the distribution of interim cash dividends in line with the dividend policy previously outlined in the IPO prospectus," he added.
Tecom Group intends to distribute cash dividends as follows: Dh200 million for October 2022; Dh200 million for April 2023; Dh400 million for October 2023; Dh400 million for April 2024; Dh400 million for October 2024; Dh400 million for April 2025, and Dh400 million for October 2025.
Tecom Group reported strong financial performance for the first nine months of 2022, with net profit increasing 51 per cent year-on-year (YoY) basis to Dh639 million. These robust results were underpinned by the double-digit growth in revenue driven by high occupancy levels, lower operational expenses due to operational efficiency measures and lower financial costs thanks to prudent financial management.
The Company's Funds from Operations (FFO), a measure of its cash from operations, was Dh864 million for the nine-month period (Dh1.228 billion over the last twelve months), a 34 per cent year-on-year increase, demonstrating the company's successful continued focus on driving quality revenues amid an improving economic backdrop.
— business@khaleejtimes.com
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