TECOM reports AED1.2 billion net profit

TECOM Group PJSC on Thursday announced a record AED2.4 billion in revenue, representing an 11 per cent year-on-year (YoY) increase, resulting in a 14 per cent YoY increase in net profit to AED1.2 billion for the financial year ending December 31, 2024 (FY 2024).

The figures reflect the impact of the Group's strategy to further strengthen its core business proposition in Dubai through targeted portfolio expansion and increased operational efficiencies, as well as its robust occupancy and retention rates through 2024.

The Board of Directors has proposed a dividend payment of AED400 million (8 fils per share) for the second half of 2024, subject to shareholders' approval at the upcoming Annual General Meeting on March 10, and in line with the dividend policy valid through the first half of 2025.

The Board of Directors has also reviewed the interim cash dividend for the second half of 2025 which is expected to increase by 10 per cent.

Malek Al Malek, Chairman of TECOM Group, said, "TECOM Group's strong results in 2024 reaffirm our commitment to leveraging Dubai's robust economic fundamentals and contributing to its knowledge economy by attracting global companies and skilled talent across six key sectors."

"The AED2.7 billion of investments announced through 2024 will further expand the Group's portfolio, enabling its continued sustainable growth and reinforcing its role as a strategic driver in Dubai's business sector. We are investing in TECOM Group's future while delivering exceptional financial results, carefully managing costs, and maintaining high levels of customer satisfaction."

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, "Led by dynamic non-oil GDP growth, Dubai and the UAE are delivering sustained growth across the commercial real estate and the industrial sectors.

"Driven by robust asset performance, strong customer demand, prudent cost management, and increased customer satisfaction, TECOM Group delivered substantial growth across revenue, EBITDA, and property valuation in 2024. Our success through 2024 is demonstrated in our strong share price performance, with a YoY increase of 15 per cent representing positive shareholder returns as well as the sustainable, long-term value of TECOM Group's proposition."

Revenue increased by 11 per cent YoY to more than AED2.4 billion, driven by a 5 per cent YoY rise in occupancy to 94 per cent, an impressive retention rate of 92 per cent, and higher rental rates.

The fair value of the Group's Investment Properties (IP) portfolio, conducted by CBRE, ascertained a fair value of AED28 billion as of 31st December 2024, representing a like-for-like increase of 11 per cent compared to 2023 levels and a YoY increase of 22 per cent, including new acquisitions during the year.

In Q4 2024, revenue increased 11 per cent YoY to AED643 million, while EBITDA grew by 9 percent compared to FY 2023, reaching AED458 million, with an EBITDA margin of 71 per cent.