Tecom Group's Fiscal Year 2023 Performance

Tecom Group's Strong Fiscal Year 2023 Performance

Tecom Group PJSC recently convened its Annual General Assembly Meeting at Dubai Internet City, where pivotal resolutions were approved. Shareholders greenlit the financial statements for the fiscal year ending on December 31, 2023. Additionally, they endorsed a proposal put forth by the Board of Directors to allocate a cash dividend totaling Dh400 million, equivalent to 8 fils per ordinary share, for the second half of 2023. This brings the total dividend distribution for the fiscal year 2023 to Dh800 million.

This dividend payment aligns with Tecom Group's dividend policy outlined in the IPO prospectus. The company pledged to distribute Dh800 million annually through September 2025. Any future decisions regarding dividend allocations will be contingent upon recommendations from the Board of Directors and approval from shareholders.

Malek Al Malek, Chairman of Tecom Group, lauded the exceptional financial and operational achievements of the company in 2023. He emphasized the robustness of Tecom Group's business model, the appeal of its ten specialized business districts, and its unparalleled capabilities that capitalized on promising opportunities within the UAE and Dubai. Al Malek highlighted the company's commitment to innovation and its role as a strategic business enabler in Dubai, aiming to deliver superior value to its shareholders continually.

In terms of financial performance, Tecom Group reported impressive results for the fiscal year ending December 31, 2023. Revenues surged by 10 percent year-on-year (YoY), reaching a record high of Dh2.2 billion. Furthermore, net profit witnessed a substantial 49 percent YoY increase, soaring to Dh1.1 billion. The company also maintained a robust balance sheet, with notable upticks in funds from operations (FFO) and recurring free cash flow (RCFC).

As of December 31, 2023, the occupancy rates for the commercial and industrial portfolio stood at 89 percent, while land lease occupancy rates climbed to 94 percent. Tecom Group's international and regional customer base saw a 15 percent rise, totaling 11,000 customers. These positive metrics were driven by strong demand from both new and existing customers across all six sectors served by the Group. This performance was underpinned by Dubai's resilient economic performance, government initiatives fostering growth and diversification, and buoyant consumer and business confidence.

In conclusion, Tecom Group's recent Annual General Assembly Meeting showcased its commitment to delivering value to shareholders through prudent financial management and strategic dividend distributions. The company's stellar financial and operational performance in 2023 underscores its resilience and ability to capitalize on opportunities, positioning it as a key player in Dubai's dynamic business landscape.