Dubai's Tecom posts 51pc jump in profit to hit Dh639m

Issac John

Dubai’s Tecom Group said on Wednesday its first 9-month profit jumped 51 per cent year-on-year Dh639 million, underpinned by strong growth in revenues, lower operational expenses, and prudent financial management.

The operator of specialised business districts in Dubai, said in a statement that during the period revenue increased 15 per cent year-on-year to Dh1.48 billion, driven by strong growth across all business segments.

For the third quarter, it recorded a net profit increase of 70 per cent year-on-year to Dh212 million in the strongest quarter, as growth across segments was sustained. Revenue for Q3 came in at Dh490 million, increasing 12.48 per cent year-on-year driven by rising occupancy levels across the portfolio, especially office, warehouse, and worker accommodation, said the statement.

Revenue for nine months increased 15 per cent year-on-year to Dh1.48 billion, driven by strong growth across all business segments, it said.

The Board of Directors of Tecom recommended an interim cash dividend payment of Dh200 million (4.0 fils per share), the first payment of the proposed Dh400 million payout for the second half of 2022 in line with the dividend policy, subject to shareholder approval at the next annual general meeting, the statement said.

Abdulla Belhoul, chief executive officer of Tecom Group, said the remarkable performance in Q3 is a testament to the group’s ability to effectively deliver on its growth strategy to drive net asset value growth and maximise shareholder returns.

Rising occupancy

“The increase in occupancy rates across our portfolio reflects the sharp rise in demand in the commercial real estate market, underpinned by Dubai’s economic expansion and the government’s pro-growth initiatives to further improve the ease of doing business and attract top global talent and foreign direct investment. As Dubai’s largest commercial real estate owner, our Group remains well-positioned to capitalise on the encouraging economic growth and positive business sentiment within the six knowledge-based economic sectors it caters to,” he said.

Belhoul said the group remained optimistic in its ability to maintain a robust financial performance in light of global market uncertainty and will continue to contribute to strengthening Dubai’s position as an attractive global business and talent hub.

issacjohn@khaleejtimes.com