TECOM reports Dhs293 million net profit in first quarter

TECOM Group on Friday announced a 15 per cent year-on-year (YoY) increase in net profit to Dhs293 million for the three-month period ended March 31st, 2024 (Q1).

EBITDA for the first three months of the year increased 10 per cent YoY to Dhs439 million, while EBITDA margins remained at a healthy 78 per cent.

TECOM stated that EBITDA rose on the back of robust top-line growth as the Group maintained prudent cost controls.

Revenue increased 10 per cent YoY to Dhs564 million as the portfolio occupancy rate across the commercial and industrial leasing portfolio reached an all-time high of 91 per cent, driven by strong demand across all leasing and service segments as business activity across various sectors continued to strengthen. The robust macroeconomic backdrop and supportive government initiatives and measures underpinned this growth.

Funds From Operations (FFO) stood at Dhs413 million, representing a 15 per cent YoY increase on improved collections and increased performance of income-generating assets.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, “We are starting the year on a very strong footing. We achieved a robust financial and operational performance in the first quarter, building on our successes in 2023. This stands as a testament to our ability to leverage our diverse portfolio to satisfy the rising demand for quality commercial spaces and solutions spurred by Dubai’s broad-based economic growth.”

WAM