• Home
• /
• Business

DTC earnings grows 20% YoY to Dh432.2 million

Revenue Increased 13% to Dh1.60 billion

Dubai Taxi Company maintained strong momentum during the first nine months of 2024, results showed on Wednesday.

Revenue for the period increased 13 per cent year-on-year to Dh1.60 billion, driven by positive performance across all its segments. Dubai’s positive macroeconomic environment, increased tourism and population growth continues to support demand for DTC’s diverse transportation services.

Revenue in DTC’s taxi segment increased 12 per cent year-on-year to Dh1.39 billion, driven by an increased number of trips and average trip length. The company expanded its operating fleet by 444 vehicles since the start of the year, taking its total operational taxi fleet to 5,660 at the end of the period. This does not include the recently awarded 300 new taxi licences which have been rolled out post-period. The limousine segment saw revenue increase by a steady 3 per cent year-on-year to Dh89.1 million in the first nine months of 2024. The Company’s taxis and limousines completed 36 million trips during the period, up 5 per cent year-on-year.

DTC’s bus segment achieved solid growth during the period, with new service contracts secured and 77 vehicles added to its fleet. As a result, revenue increased 27 per cent year-on-year to Dh87.7 million. Partnerships with major delivery aggregators in the UAE, including Talabat, the region’s leading delivery platform, supported the rapid expansion of the Company’s delivery bike segment, which saw revenue grow 2.5 times.

The company’s strong topline performance resulted in a 20 per cent year-on-year increase in earnings for interest, taxes, depreciation and amortisation (Ebitda) to Dh432.2 million, at an attractive margin of 27 per cent. DTC continues to focus on cost optimisation through operational efficiencies and the adoption of fuel-efficient vehicles in line with its sustainability commitments. DTC’s taxi and limousine fleet is now more than 85 per cent environmentally friendly, consisting of either hybrid or electric vehicles.

Profit before tax and interest costs increased 19 per cent year-on-year to Dh319.3 million. This is a comparable metric year-on-year as corporate tax was not payable in 2023. Reported net profit declined 7 per cent year-on-year to Dh247.1 million, due to the introduction of corporate tax in the UAE and increased interest costs.

DTC maintains a healthy balance sheet, with a highly attractive net debt to Ebitda ratio of 1.3x and a cash balance of Dh272.3 million, including Wakala deposits, as of September 30, 2024.

DTC’s CEO Mansoor Rahma Alfalasi said: “DTC delivered a strong set of results during the nine-month period as we continued to deliver on our growth priorities and position the Company for future growth. Revenue increased 13 per cent year-on-year with Ebitda margin increasing 2 percentage points to 27 per cent, as we consolidated our market leadership, increasing our Dubai taxi market share to 46 per cent, and expanded our fleet across all our segments. DTC continues to be an innovator in the mobility sector, supporting Dubai’s transportation infrastructure and ensuring the emirate remains a leading business and tourism destination. With accessibility and innovation a priority for DTC, we partnered with mobility leader Bolt to launch its cutting-edge platform in Dubai. This partnership will significantly expand our customer base to include Bolt’s existing global users, unlocking new potential revenue streams for DTC.”

DTC maintained a positive outlook across all its business segments, enabled by Dubai’s strong economic outlook and a forecast resident population Compound Annual Growth Rate (CAGR) of 2.8 per cent between 2023 and 2040, as well as a tourist visitor CAGR of 20.5 per cent between 2023 and 2025. During the period, Dubai Airports raised its annual passenger forecast to 93 million in 2024, with passengers whose final destination is Dubai making up 60 per cent of the airport’s total traffic today, compared to 40 per cent before the pandemic, underscoring the city’s status as a growing tourism and business destination.