Dubai Taxi Company PJSC (DTC), a prominent provider of comprehensive mobility solutions in Dubai, has released its financial results for the nine months ending 30 September 2024. DTC demonstrated robust growth during the initial nine months of 2024, continuing to implement its strategies for fleet expansion and enhancing its profitable exclusivity agreements. The company’s revenue for this period rose by 13 percent year-on-year, reaching AED1.60 billion ($435.6 million), buoyed by strong performances across all segments. The favorable macroeconomic conditions in Dubai, coupled with a rise in tourism and population growth, have further fueled demand for DTC’s varied transportation services.
Taxi segment performance
In the taxi segment, DTC saw revenue climb 12 percent year-on-year to AED1.39 billion ($378.4 million), attributed to a higher number of trips and increased average trip lengths. The company expanded its operational fleet by 444 vehicles since the beginning of the year, bringing the total operational taxi fleet to 5,660 by the end of the period. This figure does not include the recently awarded 300 new taxi licenses, which are set to be implemented post-period. Meanwhile, the limousine segment recorded a steady revenue increase of 3 percent year-on-year, amounting to AED89.1 million for the first nine months of 2024. Throughout this period, DTC’s taxis and limousines completed 36 million trips, reflecting a 5 percent increase year-on-year.
DTC’s bus segment also experienced significant growth, bolstered by new service contracts and an addition of 77 vehicles to its fleet. Consequently, revenue surged by 27 percent year-on-year to AED87.7 million. The company’s collaborations with major delivery aggregators in the UAE, including Talabat, the leading delivery platform in the region, facilitated the rapid growth of its delivery bike segment, which saw revenue increase by 2.5 times.
Read more: Dubai Taxi Company secures 300 new plates, projects $27.2 million in extra annual revenue
EBITDA and profitability
The strong revenue performance resulted in a 20 percent year-on-year rise in EBITDA, reaching AED432.2 million, with an attractive margin of 27 percent. DTC remains committed to cost optimization through operational efficiencies and the integration of fuel-efficient vehicles, aligning with its sustainability goals. Currently, more than 85 percent of DTC’s taxi and limousine fleet comprises environmentally friendly vehicles, including hybrids and electric models.
Profit before tax and interest costs rose by 19 percent year-on-year to AED319.3 million. This figure is comparable year-on-year, as corporate tax was not applicable in 2023. Reported net profit, however, declined by 7 percent year-on-year to AED247.1 million, primarily due to the introduction of corporate tax in the UAE and increased interest expenses.
DTC continues to uphold a solid balance sheet, boasting a favorable net debt to EBITDA ratio of 1.3x and a cash balance of AED272.3 million, including Wakala deposits, as of 30 September 2024.
Revenue growth and margin improvement
Reflecting on the company’s results for the first nine months of 2024, DTC’s CEO, Mansoor Rahma Alfalasi, noted that DTC achieved impressive results during this nine-month period as the company continued to fulfill its growth objectives and position itself for future success. He mentioned that revenue grew by 13 percent year-on-year, with EBITDA margins improving by 2 percentage points to 27 percent, consolidating their market leadership and increasing their market share in Dubai’s taxi sector to 46 percent. He also stated that they had expanded their fleet across all segments.
Alfalasi emphasized that DTC remains at the forefront of innovation in the mobility sector, enhancing Dubai’s transportation infrastructure and ensuring that the emirate retains its status as a premier business and tourism hub. He highlighted that, prioritizing accessibility and innovation, they have partnered with mobility leader Bolt to introduce its advanced platform in Dubai, which would significantly broaden their customer base by including Bolt’s existing global users, creating new revenue opportunities for DTC.
Additionally, he expressed optimism for the future, saying that it is underpinned by ongoing strategic initiatives and Dubai’s prominent role as a family, business, and leisure destination, supported by strong macroeconomic trends that encourage population growth and urban development. He concluded that combined, these elements would contribute to sustainable long-term growth.
Operational highlights
Dubai Taxi Company continued to advance its operations during this period. The company secured 300 new taxi licenses at the Road and Transport Authority auction in the third quarter, boosting its market share in Dubai’s taxi sector to 46 percent. These additional taxis are projected to generate an extra AED100 million in annual revenue, with 25 percent of the new licenses allocated for electric taxis, reinforcing the company’s commitment to sustainability and the UAE’s net-zero emissions target by 2050.
Additionally, post-period, DTC announced its partnership with Bolt, the global shared mobility platform, which will see Bolt launch its e-hailing system in Dubai, granting DTC exclusive operational rights in the emirate. This partnership will enable DTC to capture a greater share of the taxi and e-hailing market, contributing to Dubai’s goals of transitioning 80 percent of taxi rides to e-booking in the coming years. DTC will leverage the infrastructure and technology provided by Bolt, benefiting from the company’s global presence to attract a broader customer base of tourists and business travelers visiting Dubai.
Outlook
DTC maintains a positive outlook across all its business segments, supported by Dubai’s robust economic landscape and an anticipated resident population Compound Annual Growth Rate (CAGR) of 2.8 percent from 2023 to 2040, alongside a forecasted tourist visitor CAGR of 20.5 percent from 2023 to 2025. During this period, Dubai Airports raised its annual passenger forecast to 93 million for 2024, with passengers whose final destination is Dubai constituting 60 percent of the airport’s total traffic today, up from 40 percent pre-pandemic. This trend underscores the city’s growing appeal as a business and tourism destination. Furthermore, the International Monetary Fund (IMF) has projected a 4 percent expansion for the UAE economy this year, increasing to 5.1 percent by 2025.
In addition, Dubai recently unveiled its largest government budget for the 2025-2027 period, totaling AED272 billion, with 46 percent of next year’s budget dedicated to infrastructure development, including enhancements to the road network.
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