TECOM Group Achieves Record Revenue Growth
TECOM Group reports impressive financial results for FY 2024, showcasing strong growth across all business segments.
Summary
TECOM Group's FY 2024 results reveal a 14% increase in net profit and 11% revenue growth, attributed to high occupancy rates and strategic expansions.
TECOM Group PJSC, a leading developer of strategic business districts in Dubai, has announced remarkable financial results for the fiscal year 2024. The Group reported a record AED 2.4 billion in revenue, marking an 11% year-on-year increase. This growth has propelled the company's net profit to AED 1.2 billion, a 14% rise from the previous year.
The impressive figures are a testament to TECOM Group's strategic focus on enhancing its core business operations and expanding its portfolio. The company achieved high occupancy rates of 94% and retention rates of 92%, reflecting its ability to maintain a strong customer base and attract new businesses to its specialized districts.
TECOM Group's EBITDA also saw a significant increase of 12% year-on-year, reaching AED 1.9 billion. This growth was driven by strong operational performance across all its business segments. Furthermore, the Group's funds from operations (FFO) exceeded AED 1.6 billion, underpinned by increased revenue and operational efficiencies.
The Group's asset portfolio expanded through strategic acquisitions and development projects totaling AED 2.7 billion in 2024. The fair value of its Investment Property Portfolio increased by 11% on a like-for-like basis and by 22% inclusive of new acquisitions, reaching AED 28 billion.
The Board of Directors has proposed a dividend payment of AED 400 million (8 fils per share) for the second half of 2024, subject to shareholder approval at the upcoming Annual General Meeting in March 2025. This move underscores the company's commitment to delivering value to its shareholders.
Looking ahead, TECOM Group is well-positioned to continue its growth trajectory. The company's strategic initiatives, robust financial management, and commitment to operational excellence provide a solid foundation for future expansion. Given the strong financial performance and strategic direction, investors might consider a 'buy' recommendation for TECOM Group shares.
Source
Summary
TECOM Group reported a 14% increase in net profit for FY 2024, reaching AED 1.2 billion, driven by record revenue and strong performance across all business segments. Revenue rose by 11% year-on-year to AED 2.4 billion, supported by high occupancy rates of 94% and retention rates of 92%. EBITDA grew by 12% to AED 1.9 billion, reflecting strong operational performance. Funds from operations exceeded AED 1.6 billion due to increased revenue and operational efficiencies. The Group expanded its asset portfolio through strategic acquisitions and development projects totaling AED 2.7 billion. The fair value of its Investment Property Portfolio increased by 11% on a like-for-like basis and by 22% including new acquisitions, reaching AED 28 billion. The Board of Directors proposed a dividend payment of AED 400 million for the second half of 2024, pending shareholder approval at the Annual General Meeting on 10 March 2025. These results highlight the Group's strategy to enhance its core business in Dubai through portfolio expansion and operational efficiencies.
