Dubai Taxi Company Reports Stellar Q1 2024 Performance with 16% Revenue Surge

Dubai Taxi Company PJSC (“DTC” or the “Company”), a leading provider of comprehensive mobility solutions in Dubai, today announced its financial results for the three months ended 31 March 2024 (“Q1 2024” or the “Quarter”).

In the first quarter of 2024, the Company sustained robust growth, achieving stellar financial performance through fleet expansion and margin improvement strategies. Revenue surged by 16% year on year to AED 558.4 million, driven by growth across all segments. The core taxi segment saw a solid 15% revenue increase, benefiting from increased trips, longer trip lengths, and higher tariffs, supported by fleet expansion.

Exclusive pick-up rights at Dubai Airports and favorable tariff structures provided a competitive edge. The limousine segment also performed well, with revenue rising by 7% year on year. DTC completed 12 million trips, up 8% year on year, with 94 new taxi licenses acquired. Bus segment revenue soared by 28% year on year, driven by fleet expansion and new service contracts. The delivery bikes segment witnessed remarkable growth, with revenue increasing over fourfold year on year. EBITDA surged by 40% year on year to AED 169.9 million, with a margin of 30%, up 5 percentage points. Despite the impact of corporate tax and finance costs, net profit increased by 15% year on year to AED 108.0 million, or 26% excluding tax impact. Free cash flow stood at AED 122.7 million, while the Company maintained a healthy balance sheet with a net debt to LTM-EBITDA ratio of 1.1x and a cash balance of AED 412.5 million, including Wakala deposits.

DTC’s CEO, Mansoor Rahma Alfalasi, emphasized the company's strong momentum in the first quarter of 2024, achieving 15% year-on-year revenue growth and a 40% increase in EBITDA. The doubling of the airport taxi fleet and acquisition of 94 new taxi licenses underscore DTC's position as Dubai's largest taxi operator. Alfalasi reiterated DTC's commitment to supporting Dubai's mobility landscape by offering solutions that cater to diverse needs and adopting technologies for efficient operations. Looking ahead, Alfalasi expressed confidence in Dubai's population growth and its status as a business and leisure destination, with plans to expand further in Dubai and explore opportunities in neighboring emirates.

Q1 2024 Operational Highlights

DTC enhanced and grew its offerings across all segments during the quarter. The Company partnered with ENOC Group to equip its extensive fleet with mobile, secure, and automated refuelling services. The collaboration will enhance the operational efficiency of DTC’s fleet, optimise costs, deliver comprehensive data, and develop refuelling operations.

In the taxi segment, we launched new people of determination services for individuals with non-motor disabilities on the ‘DTC App’, enabling the booking of regular taxis instead of the specialised taxis equipped for wheelchair users at discounted rates. The service highlights DTC’s commitment to serving and empowering the populations it serves and builds on its existing services for people of determination.

Outlook

DTC holds a positive outlook across all segments, benefiting from Dubai's strong economic forecast and projected population growth of 2.8% CAGR between 2023 and 2040, alongside a tourist visits CAGR of 20.5% between 2023 and 2025. Dubai's consistent top position in the Tripadvisor Travellers' Choice Awards for 2024 and continued growth in visitor numbers, reaching 5.18 million international visitors in Q1 2024, reflect its attractiveness as a destination. With the acquisition of new taxi licenses and the expansion of airport taxis, DTC is strategically positioned to capitalize on Dubai's robust growth. Additionally, DTC aims to expand into neighboring emirates and explore market consolidation opportunities.

Financial Highlights  

 News Source: Dubai Media Office