Strong performance supported by the continued prosperity of Dubai's economy and the improvement of the business sector

TECOM's net profit for the first half grows 43.4% to 428 million dirhams

TECOM owns and operates specialized business parks focusing on vital sectors.

From the source

"TECOM Group", listed on the Dubai Financial Market under the symbol "TECOM", which owns and operates specialized business parks focused on vital sectors, announced its financial results for the second quarter and the first half ending on June 30, 2022. It confirmed a strong performance record since the beginning of this year until Now, supported by the continued prosperity of Dubai's economy, and the improvement of the business sector.

revenue and profit

According to the financial results, revenues for the first six months of 2022 increased by 15.8% on an annual basis to 989 million dirhams, thanks to the increase in occupancy rates in commercial and industrial assets, and the strong growth in revenues from the business and related services sector.

EBITDA for the first six months of 2022 grew by 22.4% year-on-year to AED 723 million, thanks to strong revenue growth and improved operational efficiency levels across all business segments, which enabled the group to achieve improvement in profit margins.

In turn, net profit for the first half of 2022 increased by 43.4% year-on-year to AED 428 million, thanks to double growth in revenues, improved operational efficiency, in addition to a decrease in total financing costs.

The group confirmed the continuation of the momentum of growth in its net profits at a strong pace, as the net profit in the second quarter increased by 54.1% on an annual basis, and 24.7% on a quarterly basis to reach 237 million dirhams.

operating revenue

Operating revenues amounted to 1.11 billion dirhams during the past 12 months (third quarter of 2021 - second quarter of 2022), thanks to the continuous improvement in market conditions, and the continued high levels of customer retention.

In turn, the ratio of net debt to earnings before interest, taxes, depreciation and amortization improved and reached 2.7 times, thanks to the hedging policy, in contrast to the increase in the global interest rate followed by the group.

Outstanding performance

Abdullah Belhoul, CEO of TECOM Group, said: “The strong results that we achieved during the first half of 2022 are an extension of our outstanding performance during 2021, and also confirm the efficiency of our business model, and the flexibility of our diversified portfolio of assets that are distinguished by their high quality and strategic locations. In addition to the value-added services that we provide.

He added, “The occupancy rates of our assets stabilized at the end of the first half at 82%, which constitutes a good and promising growth compared to 78% at the end of December 2021,” pointing out that this remarkable improvement indicates the positive work environment for the customer base, which includes more than 7800 customers.

He stressed that the group's strong performance enhances its leading position in Dubai, and reflects favorable supply and demand factors in the commercial and industrial sectors.

"We are optimistic about our ability to maintain the steady growth rate in occupancy rates and the high rate of customer retention during the coming period, which will enhance the stability of our revenues and cash flows in the medium term," Belhoul added.

He pointed out that "the group's clear and deliberate strategy for growth will allow it to benefit from a wide range of growth drivers and promising future directions across the six vital sectors that we focus on in our services."

He said: “Our business scope, strong and flexible performance across various market cycles, our strategic land reserves, and the extensive experience of our team are all important factors that will enable us to quickly seize the right opportunities, support the group’s sustainable growth in the long term, and provide additional value to our shareholders.”

"TECOM Group"

TECOM Group owns an integrated portfolio of real estate assets distributed over 10 business parks with locations

strategy in Dubai, and these complexes serve six sectors, namely:

■ Technology sector: Dubai Internet City and Dubai Outsource City business parks.

■ Media sector: Dubai Media City, Dubai Studio City, and Dubai Production City business parks.

■ Education sector: Dubai International Academic City and Dubai Knowledge Park business parks.

■ Science Sector: Dubai Science Park.

■ Design Sector: Dubai Design District.

■ Industry sector: Dubai Industrial City.

The company also provides real estate solutions across three sectors: commercial leasing, land leasing, and industrial leasing.

Group revenue for the first six months of 2022 increased by 15.8% year-on-year to AED 989 million.

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