Dubai's Tecom Group has seen its H1 2022 net profit jump 43.4% YoY (year-on-year) to AED428 million ($116.5 million) owing to double-digit revenue growth, enhanced operational efficiencies and lower total financing costs.
The company, the creator of specialised business districts and vibrant communities, is sustaining a strong net profit growth momentum, with Q2 net profit increasing 54.1% YoY and 24.7% quarter on quarter (QoQ) to AED237 million.
Revenue for H1 2022 increased 15.8% YoY to AED989 million on increased occupancy rates across Commercial and Industrial properties and strong revenue growth from the business and value-added service segment.
EBITDA grows 22.4pc
EBITDA for H1 2022 grew 22.4% YoY to AED723 million on top line growth and enhanced operational efficiencies across all business segments, which helped the margin improvement.
Funds from operations was AED1.11 billion over the last twelve months (Q3 2021 – Q2 2022) on continued improvement in business conditions and continued high levels of customer retention.
The net debt to EBITDA ratio has improved to 2.7x, owing to the company’s hedging strategy against rising interest rates.
Well-balanced business model
Abdulla Belhoul, Chief Executive Officer of Tecom Group, said: “Our 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%, an encouraging increase from the 78% 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.
“We are optimistic in our ability to sustain a steady increase in our occupancy levels and high customer retention levels for the upcoming period. This will add further stability to our revenue and cash flow for the midterm. Furthermore, our well-defined strategy for growth will enable us to take advantage of a broad spectrum of growth drivers from secular trends pertaining to each of the six vital sectors we cater to.
“Our scale, resilient financial performance through various market cycles, strategic land bank, experienced team, and current strong leverage position will enable us to swiftly capture those opportunities, further supporting long-term sustainable growth and helping to unlock additional value for our shareholders.”-- TradeArabia News Service