Talaat Moustafa Group Holding (TMG) has achieved remarkable business results during the first nine months (9M) of 2024. The company reported record sales of EGP 470bn ($7.4bn) year-to-date. The company said that these sales were boosted by the groups' entry into Saudi Arabia with the Banan project in Riyadh and the remarkable launch of the SouthMed project in the North Coast. Additionally, the group has significantly grown its hospitality segment and other recurring income streams, by acquiring seven iconic historical assets in Egypt and adding more than 2,500 hotel rooms to its portfolio, providing a stable and predictable revenue stream. Moreover, recurring income revenues, including hotels, recurring revenue and the service sector, have grown 2.4x to EGP 11.9bn in 9M 2024 from EGP 4.9bn in 9M 2023. The recurring revenue represented 43% of the total consolidated revenue in the period compared to 27% for the same period in 2023. The group's strategic asset monetization has improved liquidity and financial stability enabling reinvestment in high-growth opportunities as evidenced by its cash balance of EGP 44.8bn as of 30 September 2024. Furthermore, the TMG's management followed a prudent expansion plan of landbank and project inventory whereby the first nine months have witnessed the successful entry into Saudi Arabia through the 10m sqm Banan project and the 23m sqm development agreement in the North Coast, enhancing the group's profitability and cash flows. By 2024-end, the group's operational and financial performance will have met and continued to meet all these strategic objectives, significantly surpassing initial expectations and securing remarkable growth and financial security anticipated in the coming years. For property sales, the group has achieved EGP 470bn until 6 November, representing a remarkable growth of 4.3xtimes year-over-year compared to EGP 108bn achieved in the same period last year. Sales and reservations in SouthMed have reached over EGP 280bn ($5.6bn) within just months from the project launch beginning of July, meanwhile, the sustainable city project Banan in Saudi Arabia, launched in Mid-May 2024, has generated total sales exceeding EGP 53bn to date. Accordingly, the total sales soared to EGP 454bn in 9M 2024 compared to EGP 93.1bn booked in the same period of 2023 making year-over-year growth approximately 5 times. The figures include sales of the group's real estate companies amounting to EGP 142.6bn, of which EGP 52bn were achieved in Banan and EGP 34bn sales for third parties. Besides, the 9M 2024 sales results include stand-alone sporting club's membership sales totalling some EGP 1.7bn, representing 3,607 memberships and compared to EGP 781m and 2,236 memberships sold in the same period last year. Regarding the hotel sector, the TMG has recorded total revenues of EGP 7.77bn in 9M 2024, compared to EGP 2.68bn reported in the same period last year, growing by a remarkable 190% year-over-year. Moreover, the group booked some EGP 1.34bn of additional profits related to Legacy acquisition during 9M 2024. The group's profit margin of hospitality revenues in the 9M 2024 expanded to 60.8% up by a significant 15.4pp year-over-year from 45.5% reported in 9M 2023. Nevertheless, the revenues from recurring income and services activities amounted to approximately EGP 4.13bn during 9M 2024, compared to EGP 2.22bn in the same period of the previous year, with a remarkable growth rate of 87% year-over-year. Furthermore, revenues from rental activities across all opening TMG malls reached EGP 662m, growing by a robust 35% year-over-year.
