Dubai, UAE – Dubai Taxi Company PJSC (DTC), the premier mobility solutions provider in Dubai, has released its financial results for the first quarter of 2024, showcasing a continuation of its strong growth trajectory. The company’s revenue saw a significant increase of 16% year-on-year, reaching AED 558.4 million, attributed to enhancements across all operational segments.
The core taxi operations of DTC recorded a 15% increase in revenue, bolstered by a rise in the number of trips, longer trip distances, and higher tariffs. The addition of new taxis to the fleet, coupled with exclusive pick-up rights at Dubai Airports and favorable tariff agreements in high-traffic areas, have fortified DTC’s competitive edge in the city.
The limousine service also demonstrated robust growth, with a 7% year-on-year revenue increase and a remarkable 17% growth compared to the previous quarter. Overall, DTC’s taxis and limousines completed 12 million trips, marking an 8% increase from the same period last year, following the acquisition of 94 new taxi licenses in the latest RTA auction.
DTC’s bus segment experienced a 28% surge in revenue, reaching AED 37 million, driven by an expanded fleet and new service contracts. The delivery bikes segment emerged as a standout performer, with revenues multiplying fourfold, capitalizing on the booming e-commerce market and the rising demand for on-demand delivery services.
The company’s EBITDA soared by 40% year-on-year to AED 169.9 million, reflecting an impressive 30% margin, which is a 5 percentage point increase from the previous year. Despite the new corporate tax and finance costs, DTC’s net profit rose by 15% to AED 108.0 million. Excluding the tax impact, the net profit would have seen a 26% increase. The quarter also generated a free cash flow of AED 122.7 million.
With a solid balance sheet, DTC reported a net debt to LTM-EBITDA ratio of 1.1x and a cash reserve of AED 412.5 million, including Wakala deposits. The company remains optimistic about its future, supported by Dubai’s positive economic forecast, a projected resident population CAGR of 2.8% from 2023 to 2040, and an anticipated tourist visit CAGR of 20.5% from 2023 to 2025.
Dubai’s sustained acclaim as the top city in the Tripadvisor Travellers’ Choice Awards for the third consecutive year and an 11% increase in international visitors in Q1 2024 underscore the city’s appeal. DTC is well-positioned to capitalize on this growth, with new taxi licenses and expanded airport services, as it continues to explore expansion and market consolidation opportunities in the region.
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