TECOM Group Reports Record Nine-Month Profit Surge
TECOM Group PJSC reports a 23% increase in net profit for the first nine months of 2024, driven by strong demand and strategic investments.
Summary
TECOM Group PJSC has announced a 23% YoY increase in net profit, reaching AED 943 million for the first nine months of 2024. The company attributes its success to increased demand for its premium commercial and industrial assets, resulting in record revenues of AED 1.7 billion.
TECOM Group PJSC, a prominent name in the development of sector-focused business districts in Dubai, has reported a stellar financial performance for the first nine months of 2024. The company has achieved a remarkable 23% year-on-year increase in net profit, amounting to AED 943 million, driven by record revenues of AED 1.7 billion.
With an impressive 10% increase in revenue compared to the previous year, TECOM Group has demonstrated its resilience and strategic prowess in navigating the competitive landscape. This growth is largely attributed to the steady demand for the company's premium commercial and industrial assets, which continue to attract both existing and new customers.
EBITDA for the period also saw a substantial growth of 13% YoY, reaching AED 1.4 billion. This reflects the company's success in enhancing operational and financial efficiencies. The EBITDA margin improved by 2%, highlighting TECOM's ability to optimize its operations effectively.
The group's funds from operations surged by 20%, totaling over AED 1.2 billion, showcasing its robust cash flow management. This financial strength is further underscored by total investments exceeding AED 2.7 billion in commercial and industrial assets, aligning with TECOM's vision for sustainable growth.
In the third quarter alone, TECOM Group achieved a 12% YoY increase in revenues, amounting to AED 611 million, and a 20% rise in net profit to AED 340 million. These figures underscore the company's consistent performance and its ability to capitalize on market opportunities.
Given TECOM Group's strong financial performance, strategic investments, and its role in cementing Dubai's status as a global business hub, the outlook for the company remains promising. However, considering the current market dynamics and the need for cautious optimism, the recommendation is to hold the stock. This approach allows investors to benefit from potential future growth while mitigating risks associated with market fluctuations.
Source
Summary
TECOM Group reported a 23% year-on-year increase in net profit for the first nine months of 2024, reaching AED 943 million, driven by record revenues of AED 1.7 billion, a 10% increase from the previous year. The company's EBITDA rose by 13% to AED 1.4 billion due to increased revenues and operational efficiencies. Funds from operations increased by 20% to over AED 1.2 billion, while total investments in commercial and industrial assets surpassed AED 2.7 billion. In the third quarter, TECOM achieved a 12% rise in revenue to AED 611 million and a 20% increase in net profit to AED 340 million.
