Dubai Taxi Company revenue up 14% as it completes 23 million trips

Image credit: Government of Dubai Media Office

Dubai Taxi Company (DTC) announced its financial results for the first half of 2024, showcasing a robust performance with significant growth across all its operating segments.

DTC said its revenue grew by 14 per cent year-on-year to Dhs1.09bn, driven by its ongoing growth strategy, which includes fleet expansion and new strategic partnerships.

The core taxi segment saw a 12 per cent year-on-year increase in revenue, reaching Dhs939m, fueled by more trips, longer trip lengths, and a 294-vehicle fleet expansion.

The taxi segment benefited from higher tariffs and an increased number of dedicated airport taxis. Additionally, revenue from the limousine segment rose by 6 per cent year-on-year to Dhs61.7m.

The company’s taxis and limousines completed 23 million trips during the period, an increase of 4 per cent year-on-year.

The bus segment achieved a 26 per cent year-on-year revenue increase to Dhs72m, due to new service contracts and fleet growth.

DTC’s chairman, Abdul Muhsen Ibrahim Kalbat emphasised DTC’s ability to capitalise on Dubai’s growth and urban development. Abdul Muhsen Ibrahim Kalbat, said: “Our results for the first half of 2024 demonstrate DTC’s ability to execute its growth strategy and take advantage of Dubai’s positive growth story.”

“We have a well-defined vision and strategy that capitalises on Dubai’s ambitious urban development and robust resident and tourism growth, ensuring we are well-positioned to deliver long-term growth and value creation for our shareholders.”

Profitability and margins

DTC’s EBITDA increased by 27 per cent year-on-year to Dhs309.3m, with a margin of 28 per cent. Despite the impact of corporate tax and finance costs, net profit rose by 1 per cent year-on-year to Dhs187.4m. Excluding these impacts, net profit grew by 27 per cent, DTC said in its earnings report.

CEO Mansoor Rahma Alfalasi highlighted the company’s strategic execution, fleet expansion, and market leadership. “We delivered a robust set of results during the first half of 2024 with revenue increasing 14 per cent year-on-year, sustaining an attractive EBITDA margin of 28 per cent, as we continued to execute our strategic growth plans of fleet expansion while leveraging our industry-leading partnerships.”

“We increased our taxi fleet by 294 vehicles compared to the previous year following the successful award of new taxi licences in Q1 2024, enabling us to further consolidate our market leadership to 45 per cent of Dubai’s taxi market share.”

Financial position

DTC reported a 65 per cent increase in free cash flow to Dhs178.5m and maintained a healthy balance sheet with a net debt to EBITDA ratio of 1.1x.

Dividend announcement

The Board approved an interim dividend of Dhs159.3m for H1 2024, expected to be distributed in August 2024.

Outlook

DTC said it remains optimistic, supported by Dubai’s economic growth and increasing resident and tourist numbers, forecasting sustainable demand for its services.

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