Tecom Group has announced net profits for H1 of 2022 jumped 43.4 per cent year-on-year (YoY) to AED 428 million, due to a double-digit growth in revenue, enhanced operational efficiencies and also lower total financing costs.
Revenue for the first six months of 2022 was up 15.8 per cent YoY to AED 989 million on an increase in occupancy rates across commercial and industrial properties and strong revenue growth from the business and value-added service segment.
EBITDA for the first six months of 2022 grew 22.4 per cent YoY to AED 723 million on top line growth and enhanced operational efficiencies across all business segments, which helped the margin improvement.
The company is sustaining strong net profit growth momentum, with Q2 net profit increasing 54.1 per cent YoY and 24.7 per cent quarter-on-quarter (QoQ) to AED 237 million.
Funds from operations equated to AED 1.11 billion over the last twelve months (Q3 2021 – Q2 2022) on the continued improvement in business conditions and continued high levels of customer retention while the net debt to EBITDA ratio has improved to 2.7x, owing to the Company’s hedging strategy against rising interest rates.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said the strong performance in the first half of the year "builds on our solid performance in 2021 and underscores the strength of our well-balanced business model and the resilience of our diversified portfolio of quality, strategically located assets and value-added services.
"At the end of the period, the consolidated occupancy level at our operating assets was 82 per cent, an encouraging increase from the 78 per cent at the end of December 2021, reflecting positive business sentiment of our over 7,800 customers and reinforces our leadership position in Dubai. Our performance also reflects the constructive demand-supply dynamics of the commercial and industrial real estate market."
The CEO added that their strategy will enable them to take advantage of a broad spectrum of growth drivers while their scale, resilient financial performance, and current strong leverage position will enable Tecom Group to swiftly capture opportunities, further supporting long-term sustainable growth and helping to unlock additional value for shareholders.