The UAE’s Tecom Group has announced it obtained its highest-ever revenues in 2023, reaching Dh2.2 billion, a 10% year-on-year (YoY) increase. The company’s overall net profits were Dh1.1 billion, a 49% increase from the prior year’s Dh725 million.
The strong financial performance was “driven by robust demand from new and existing customers and underpinned by Dubai’s resilient economic performance”, Tecom said in a press release.
In light of the positive results, the company said it will releaser Dh400 million to shareholders, with the payment to be made in April.
In the fourth quarter of 2024, the company reported a 17% increase in revenue, to Dh579 million, due to an increase in new customers including Yango, Sokovo, Himalaya Wellness and Nutridor, as well as strong demand from existing customers.
“2023 was a remarkable year for the UAE and Dubai’s economy, supported by strong performance across several sectors including the commercial real estate sector, which has outperformed other global markets,” said Malek Al Malek, Chairman of Tecom Group.
“This has enabled Tecom Group to cement its position as the leading owner and operator of specialised business districts and a major contributor to the rapid growth of Dubai’s knowledge and innovation-based economy.”
The group has highlighted the impact of the lower operational and financial costs, which it attributed to Tecom’s ongoing efforts to enhance operations, reduce costs to complement its funding needs and growth plans.
Of particular interest were the high occupancy rates of the company’s properties, averaging 89% per cent across a portfolio that includes the likes of Dubai Internet and Media cities, the Dubai Design District and Industrial City.
“Our strong financial performance reflects our ability to capitalise on favourable opportunities in Dubai’s attractive commercial and industrial market and satisfy demand trends by leveraging our unique and diverse offerings,” said Abdulla Belhoul, Chief Executive Officer of Tecom Group.
“We successfully converted demand-driven business growth into sustainable bottom-line expansion, thanks to our focus on operating at more efficient levels across the business which pushed EBITDA and EBITDA margins higher.”
Following an independent valuation exercise, the market value of the Group’s real estate investments portfolio increased by 7.7% in 2023, reaching Dh22.9 billion.