In its inaugural full-year financial report post-IPO on the Dubai Financial Market (DFM), Dubai Taxi Company (DTC) declared an 11 percent surge in revenue to AED 1.95B ($530M) for the fiscal year 2023.
The upswing was propelled by the robust performance of its taxi segment, with the number of trips increasing by 8 percent YoY to 46 million, bolstered by Dubai’s expansion and DTC’s exclusivity agreements, particularly at Dubai International Airport.
As of the end of 2023, DTC’s fleet size surpassed 7,400 vehicles. The revenue uptick resulted in a 55 percent YoY increase in EBITDA to AED 490.5M ($133.56M), reflecting a 25 percent margin and a 7 percentage points YoY increase. Net profit reached AED 345.3M ($94M), marking a 54 percent YoY increase, accompanied by free cash flow of AED 129M ($35.1M).
DTC credited these positive figures to its continual focus on operational efficiencies through technology adoption, including a modernised control centre optimising fleet distribution and increased adoption of e-hailing.
Mansoor Rahma Alfalasi, DTC’s CEO, stated, “DTC delivered a good set of results with revenue increasing 11 percent year-on-year, driving a 54 percent rise in net profit.” He highlighted strategic priorities such as fleet expansion and technology implementation.
The company expressed optimism across all segments, citing Dubai’s strong economic outlook, forecasted population growth of 2.8 percent CAGR between 2023 and 2040, and a tourism CAGR of 20.5 percent between 2023 and 2025. DTC anticipates increased demand due to the Dubai 2040 Urban Master Plan, envisioning new urban clusters.
DTC maintained a positive outlook following its IPO, citing the strength of its business, market-leading position, and a supportive regulatory environment. The company reported a healthy balance sheet with a net debt to EBITDA ratio of 1.3x, according to Arabian Business.
The Board approved DTC’s first dividend of AED 71M ($19.33M), equivalent to 2.84 fils per share for Q4 2023, subject to shareholders’ approval, scheduled for distribution in April.
