Google profit

Tecom board recommends $54 million interim dividend after strong first-half profit

The board of Tecom Group, the operator of Dubai’s business districts, has recommended an interim cash dividend of 200 million dirhams ($54.45 million) after the company posted a strong profit in the first semester.

The dividend payment, subject to shareholder approval at its next annual general meeting, is in line with the company’s previously announced dividend policy of distributing 800 million dirhams per year until October 2025, the company said in a statement on Monday at the Dubai Financial Market, where its shares are traded.

The first interim dividend of 200 million dirhams is expected to be paid to shareholders this month, the company said.

Tecom Group raised 1.7 billion dirhams ($462.8 million) in its IPO earlier this year. The IPO was oversubscribed 21 times, with total gross demand of more than 35 billion dirhams.

The company’s shares were listed on the Dubai Financial Market in July.

The group reported a 43.4% jump in profit in the first half to 428 million Dh, the turnover having increased by around 16% to 989.4 million Dh.

The company’s profit in the second quarter increased by 54% year on year to reach 237 million dirhams thanks to higher revenues.

“Our strong performance in the first half builds on our strong performance in 2021 and underscores the strength of our well-balanced business model and the resilience of our diverse portfolio of quality, strategically located assets and value-added services.” , Chief Executive Abdulla Belhoul said in August.

Tecom has a land bank of 375.3 hectares and access to additional land through an exclusive right of first offer with Dubai Holding Asset Management, which serves as the basis for future growth.

The group’s 10 business districts, including Dubai Internet City, Dubai Media City, Dubai Studio City and Dubai Production City, are home to more than 7,800 businesses.

Nine of the districts are in free zones which allow 100% foreign ownership, with tenants including Meta, Google, Visa, BBC, CNN, Unilever and Dior.

Updated: October 17, 2022, 7:30 a.m.