293 million dirhams net profits "Tecom" During the first quarter
Dubai, May 3, 2017 – TECOM Group’s net profits rose 15 percent year-on-year during the first quarter of this year to reach 293 million dirhams.
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 10 percent year-on-year to reach AED 439 million during the first three months of the year, while the EBITDA margin remained at 78 percent.
According to the group, the increase in EBITDA was attributable to the strong growth in total revenues.
The group’s revenues recorded a 10 percent increase year-on-year to reach 564 million dirhams, thanks to record occupancy rates of 91 percent as a result of strong levels of demand from existing and new customers across all leasing and services sectors, in parallel with the continued growth of business activity across all sectors. Thanks to favorable conditions in the macroeconomic landscape and the positive impact of supportive government initiatives and measures.
The value of cash flows from operations reached 413 million dirhams, recording an increase of 15 percent year-on-year, as a result of strong collections and improved performance across all categories of income-generating assets.
Abdullah Belhoul, CEO of TECOM Group, said that the group’s profits reflect its strong potential and its ability to harness its diversified portfolio of assets to meet the growing levels of demand for office space and high-quality real estate solutions driven by the economic growth process that Dubai is witnessing on a large scale.
He added that in light of the continuous rise in occupancy rates across all sectors during the previous three quarters, the group succeeded in achieving an occupancy rate of 91 percent, which is the highest in the group’s history, and some business complexes are close to reaching maximum occupancy levels, and are witnessing levels of demand from new customers across sectors. The six areas in which the group focuses have increased significantly, especially for first-class office space and industrial assets, pointing out that customer retention rates within the industrial leasing sector have reached 98 percent.
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