Dubai Taxi Company PJSC (DTC), a leading provider of comprehensive mobility solutions in Dubai, announced its financial results for the six months ended 30 June 2024 (H1 2024), demonstrating robust performance.
DTC reported a 14% year-on-year revenue growth, reaching AED 1.09 billion, driven by strong growth across all its segments. This performance was underpinned by the company’s ongoing execution of its growth strategy, including expanding its taxi fleet and forming new strategic partnerships.
The core taxi segment saw a 12% year-on-year revenue increase to AED 939.0 million, attributed to increased trips, longer trip lengths, and an expanded fleet by 294 vehicles. The taxi segment also benefited from higher tariffs set by the Road and Transport Authority (RTA) and a higher proportion of dedicated airport taxis. The limousine segment experienced a 6% year-on-year revenue increase to AED 61.7 million, supported by fleet expansion and higher tariffs. Overall, DTC’s taxis and limousines completed 23 million trips during the period, a 4% increase year-on-year.
The bus segment achieved a remarkable 26% year-on-year revenue growth to AED 72.0 million, driven by new service contracts and an increased fleet size. Additionally, the bike segment continued to grow exponentially, with revenue nearly tripling year-on-year due to market expansion and new partnerships.
DTC’s strong revenue performance led to a 27% year-on-year increase in EBITDA to AED 309.3 million, maintaining an attractive margin of 28%. H1 2024 net profit rose 1% year-on-year to AED 187.4 million, impacted by the introduction of corporate tax and finance costs. Excluding the tax impact, net profit increased by 11%, and excluding interest costs related to a AED 1.0 billion loan drawn in September 2023, net profit increased by 27% on a comparable basis. Free cash flow for the period was AED 178.5 million, a 65% increase compared to H1 2023.
DTC maintained a healthy balance sheet with a net debt to EBITDA ratio of 1.1x and a cash balance of AED 374.0 million, including Wakala deposits, as of June 2024.
H.E. Abdul Muhsen Ibrahim Kalbat, Chairman of DTC, commented:
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 capitalizes on Dubai’s ambitious urban development and robust resident and tourism growth. I am also pleased to confirm that DTC’s Board has approved a dividend payout of AED 159.3 million for the first half of the year.
Mansoor Rahma Alfalasi, CEO of DTC, added:
We delivered a robust set of results during the first half of 2024 with revenue increasing 14% year-on-year. We increased our taxi fleet by 294 vehicles compared to the previous year, further consolidating our market leadership to 45% of Dubai’s taxi market share. We remain committed to delivering value to our shareholders through growth and operational excellence.
The Board of Directors approved a dividend of AED 159.3 million for H1 2024, amounting to 6.37 fils per share, in line with the company’s policy of distributing at least 85% of annual net profit. The interim dividend is expected to be distributed in August 2024.
News Source: Dubai Media Office
