Dubai-based Tecom Group, the creator of specialised business districts and communities, released its financial results for the third quarter, with net profit up 20 percent year-on-year and a 7 percent increase in revenue for the first nine months of the year.
The group’s consolidated revenue for the nine months ending September 2023 stood at AED1.6 billion ($435.6 million) and net profit was AED768 million ($209.1 million). For the same period last year, revenue was AED1.48 billion and profit was AED639 million.
EBITDA increased from AED1,087 million ($296 million) in the nine months of 2022 to AED1,234 million ($336 million), a jump of 14 percent.
Net profit for the third quarter of 2023 increased by 34 percent Y-o-Y to AED283 million ($77.05 million). Revenue for the quarter increased by 10 percent Y-o-Y to AED541 million ($147.3 million).
Occupancy level and number of customers improved by 5 percent and 17 percent respectively. From 83.5 percent on September 30, 2022, occupancy increased to 88.5 percent, while Tecom now has in excess of 10,800 customers compared to 9,200 in the same period in 2022.
Explaining Tecom’s success, Abdulla Belhoul, Chief Executive Officer, said: “Our outstanding financial and operational performance over the nine-month period reflects our ability to take advantage of Dubai’s favourable market conditions as we continue to successfully push ahead with our strategy of optimising our diverse portfolio and sustaining high occupancy rates.
“Our 10 business districts are almost near full capacity, with our existing customers continuing to renew their leases with us and new customers coming on board.
“This is a testament to the strong demand for our quality assets and unique, fully-serviced strategic locations underpinned by buoyant business conditions. Our business model, which includes a balance between long-term and short-term leases, enables us to take advantage of rising prices while providing us with greater revenue stability and visibility.”
The group announced that given the demand surge for Grade A storage and logistics spaces across Dubai, it will develop new storage and logistics facilities with a total GLA (gross leasable area) of 200,000 sq. ft. in Dubai Science Park.
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