TECOM Group (TECOM) Q3 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in Q3 and 9M 2024, with revenue for 9M 2024 at AED 1,759 million, up 10% year-over-year, and net profit at AED 943 million, a 23% increase.

• Maintained high occupancy rates across commercial, industrial, and land leasing segments, supported by strong demand and limited supply in Dubai's real estate market.

• Continued portfolio expansion through strategic acquisitions and new developments, enhancing long-term growth prospects.

• Interim and final dividends of AED 400 million each were declared and paid in 2024, totaling AED 800 million.

• Total comprehensive income was AED 862.6 million, reflecting a fair value loss on cash flow hedges.

Financial highlights

• 9M 2024 revenue reached AED 1,759 million, up 10% year-over-year; Q3 2024 revenue was AED 611 million, up 13%.

• EBITDA for 9M 2024 was AED 1,395 million (+13% YoY), with a margin of 79%; Q3 EBITDA was AED 500 million (+22% YoY), margin 82%.

• Net profit for 9M 2024 was AED 943 million (+23% YoY); Q3 net profit was AED 340 million (+20% YoY).

• Cash generated from operations was AED 1,326.4 million, up from AED 1,224.8 million year-over-year.

• Free cash flow increased due to improved collections and lower spending.

Outlook and guidance

• Revenue and EBITDA expected to grow 9% YoY in 2024, driven by high occupancy, rental rate increases, and new project deliveries.

• The Group expects to recognize AED 46.8 million in revenue from unsatisfied performance obligations over the next two years.

• Sufficient working capital and undrawn financing facilities are available to support ongoing investments.

• Positive market fundamentals and strong demand for commercial and industrial space support continued growth.