Dubai Taxi Company (DTC) has released its financial results for the first half of 2024, demonstrating strong performance with notable growth across all operational areas.
DTC reported a 14 per cent increase in revenue year-on-year to AED 1.09B, driven by its ongoing growth strategy, which includes expanding its fleet and forming new strategic partnerships.
The core taxi segment experienced a 12 per cent rise in revenue year-on-year, reaching AED 939M, due to a higher number of trips, longer trip distances, and an expansion of the fleet by 294 vehicles.
This segment benefited from increased tariffs and a greater number of dedicated airport taxis. Additionally, revenue from the limousine segment grew by 6 per cent year-on-year to AED 61.7M.
During this period, the company’s taxis and limousines completed 23 million trips, a 4 per cent increase compared to the previous year.
The bus segment saw a 26 per cent increase in revenue year-on-year, reaching AED 72M, due to new service contracts and fleet expansion.
DTC’s chairman, Abdul Muhsen Ibrahim Kalbat, highlighted the company’s ability to leverage Dubai’s growth and urban development. He stated: “Our results for the first half of 2024 show DTC’s capability to execute its growth strategy and capitalise on Dubai’s positive growth trajectory.”
“We have a clear vision and strategy that takes advantage of Dubai’s ambitious urban development and strong growth in residents and tourism, positioning us well for long-term growth and value creation for our shareholders.”
Profitability and margins
DTC’s EBITDA increased by 27 per cent year-on-year to AED 309.3M, with a margin of 28 per cent. Despite the effects of corporate tax and finance costs, net profit rose by 1 per cent year-on-year to AED 187.4M. Excluding these impacts, net profit grew by 27 per cent, according to the earnings report.
CEO Mansoor Rahma Alfalasi praised the company’s strategic execution, fleet expansion, and market leadership. “We achieved strong results in the first half of 2024 with a 14 per cent increase in revenue year-on-year and an attractive EBITDA margin of 28 per cent, while continuing to implement our strategic growth plans and leveraging our leading industry partnerships.”
“We expanded our taxi fleet by 294 vehicles from the previous year following the successful award of new taxi licences in Q1 2024, further solidifying our market leadership with a 45 per cent share of Dubai’s taxi market.”
Financial position
DTC reported a 65 per cent increase in free cash flow to AED 178.5M and maintained a solid balance sheet with a net debt to EBITDA ratio of 1.1x.
Dividend announcement
The Board has approved an interim dividend of AED 159.3M for H1 2024, expected to be distributed in August 2024.
Outlook
DTC remains optimistic, buoyed by Dubai’s economic growth and rising numbers of residents and tourists, and anticipates sustained demand for its services.
