Dubai Taxi Company reported its half-year financial results, revealing a 14 percent annual increase in revenues to AED1.09 billion ($297 million) with strong growth across all its segments.
The company’s core taxi segment achieved solid growth during the period, with revenue up 12 percent year-on-year to AED939 million. The rise in the number and length of trips in addition to the 294-vehicle fleet expansion has bolstered Dubai Taxi Company’s performance so far this year.
The taxi segment also benefited from higher tariffs, determined by the Road and Transport Authority (RTA), and an increase in the proportion of dedicated airport taxis, where the company has exclusive rights to operate and charges a higher tariff.
“We increased our taxi fleet by 294 vehicles compared to the previous year following the successful award of new taxi licenses in Q1 2024, enabling us to further consolidate our market leadership to 45 percent of Dubai’s taxi market share,” stated the company’s CEO, Mansoor Rahma Alfalasi.
Company’s segments see exponential growth
Dubai Taxi Company’s limousine segment saw revenues increase by 6 percent annually to AED61.7 million due to the fleet expansion and higher tariffs. In H1 of 2024, the company’s taxis and limousines completed 23 million trips, up 4 percent compared to H1 of 2023.
Meanwhile, the bus segment achieved stellar growth with revenue increasing by 26 percent annually to AED72 million, driven by the award of new service contracts and a growing fleet of buses.
In addition, Dubai Taxi Company’s bike segment also continued to grow exponentially, with revenue increasing almost threefold compared to H1 of 2023, supported by overall market expansion and the formation of new partnerships.
Earnings surge
Dubai Taxi Company’s strong revenue performance resulted in a 27 percent annual rise in earnings before interest, taxes, depreciation and amortization (EBITDA) to AED309.3 million at a margin of 28 percent. This growth comes as the company continues to focus on cost optimization through increasing asset utilization and adopting fuel-efficient vehicles in line with its sustainability commitments.
In addition, the company reported net profits of AED187.4 million, up 1 percent annually due to the introduction of corporate tax in the UAE. Excluding the corporate tax impact, net profit increased 11 percent.
Meanwhile, excluding interest costs from the AED1 billion loan the company drew in September 2023, net profit increased 27 percent. Moreover, free cash flow in H1 reached AED178.5 million, a 65 percent increase compared to H1 2023.
Dubai Taxi Company maintained a healthy balance sheet, with a highly attractive net debt to EBITDA ratio of 1.1x and a cash balance of AED374 million, including Wakala deposits, as of June 2024.
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AED159.3 million dividends
The company’s board of directors has approved dividends of AED159.3 million, amounting to 6.37 fils per share for H1 2024, in line with its dividend policy of targeting dividend distribution of at least 85 percent of annual net profit, distributed semi-annually. The announced interim dividend is expected to be distributed in August 2024.
“Our outlook is positive, supported by Dubai’s continued success as a leading business and leisure destination, with strong macroeconomic tailwinds enabling population growth and urban expansion, which we see driving long-term, sustainable demand growth for our services,” Alfalasi added.
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