TECOM achieves 66% payout ratio for interim dividend

DUBAI: TECOM Group is set to achieve a payout ratio of 66.34 per cent for the interim dividend after the board approved the interim dividend.

The board of directors of the Dubai Financial Market (DFM)-listed TECOM has approved an interim dividend of AED400 million for the first half (H1) that ended June 30, 2024.

 TECOM has reported a net profit of AED603 million for the first half (H1) having grown 24 per cent compared with AED485 million the company earned for the same period last year.

Quarterly profit

TECOM has posted a net profit of AED311 million for the second quarter (Q2) that ended June 30, representing a year on year growth of 35 per cent.

The company has informed that the interim dividend AED400 million, which works out a payout ratio in excess of 66 per cent, will be distributed next month (September) itself.

“As per the approved dividend policy, TECOM Group is committed to paying a total dividend amount of AED800 million per annum through September 2025,” an official statement from the company said.

Revenue

TECOM reported revenue of AED1.148 billion for the first half of the current year against AED1.049 billion the company earned for the same period in the earlier year, reflecting a 9 per cent year on year growth.

On a quarter basis, while the second quarter of the current financial year witnessed a revenue of AED584 million, the same period in the earlier year reported a revenue of AED535 million.

Top brass’ comments

Malek Al Malek, Chairman of the Board, TECOM Group, said the UAE’s and Dubai’s pro-business framework has strengthened the local knowledge and innovation-based economy.

He said the TECOM Group is leveraging Dubai’s robust fundamentals to support the growth of global businesses in the Emirate.

“The Group’s first-half financial results demonstrated the success of our prudent capital management and future-focused business strategy,” Al Malek added.

Abdulla Belhoul, Chief Executive Officer (CEO) of TECOM Group, said while Dubai reaffirms its position on the global map as a destination of choice for foreign direct investment, TECOM Group is enriching the homegrown knowledge economy by consistently enhancing the ‘ease of doing business’ and contributing to the city’s commercial real estate, which continues to outperform global peers.