Dubai Taxi Company PJSC (DTC) a leading provider of comprehensive mobility solutions in Dubai, has disclosed its financial performance for the three-month period ending on March 31, 2024 (termed “Q1 2024” or the “Quarter”).
The Company sustained its robust growth trajectory into the initial quarter of 2024, demonstrating remarkable financial achievement by persistently implementing its strategy of expanding its fleet and enhancing profit margins. Revenue for the quarter surged by 16% year-on-year to AED 558.4 million, primarily propelled by revenue enhancements across all operational segments.
DTC’s primary taxi segment experienced substantial growth during the quarter, with revenue escalating by 15% compared to the previous year, driven by increased trip frequency and distances, alongside augmented tariffs, further supported by the augmentation of taxis within its fleet.
Benefitting from exclusive pickup rights at Dubai Airports and an appealing tariff structure, DTC’s exclusive agreements in high-traffic zones of Dubai bestow a notable competitive edge over other operators in the city. The limousine segment also witnessed commendable performance, with revenue climbing by 7% year-on-year and 17% quarter-on-quarter. Notably, the Company’s taxis and limousines executed 12 million trips during the quarter, marking an 8% year-on-year increase, coinciding with the acquisition of 94 new taxi licenses at the latest RTA auction.
Furthermore, the bus segment witnessed a 28% year-on-year revenue upsurge to AED 37 million, attributed to fleet expansion and the acquisition of new service contracts. The delivery bikes segment exhibited outstanding performance, with revenue skyrocketing more than fourfold year-on-year, leveraging the burgeoning e-commerce landscape and the soaring demand for on-demand delivery services.
DTC’s robust revenue performance translated into a substantial 40% year-on-year surge in EBITDA to AED 169.9 million, maintaining an attractive margin of 30%, marking a 5-percentage-point increase from the preceding year. Leveraging its scale and market positioning, DTC persistently endeavors to drive operational efficiencies and spearhead technological advancements within the industry. Notably, the net profit for Q1 2024, notwithstanding the introduction of corporate tax and finance costs, witnessed a 15% year-on-year upswing to AED 108.0 million. Excluding the tax impact, net profit surged by 26%. The free cash flow for the quarter amounted to AED 122.7 million.
Throughout the quarter, DTC upheld a robust balance sheet, boasting a highly appealing net debt to LTM-EBITDA ratio of 1.1x and a cash balance of AED 412.5 million, inclusive of Wakala deposits.
Mansoor Rahma Alfalasi, CEO of DTC, remarked, “We sustained formidable momentum in the first quarter of 2024, achieving a 15% year-on-year revenue growth, driving a 40% increase in EBITDA, as we persistently execute our growth strategy. Noteworthy milestones include the doubling of our fleet of airport taxis and the acquisition of 94 new taxi licenses at the latest RTA auction, further consolidating our position as Dubai’s largest taxi operator. We remain steadfast in our commitment to bolstering Dubai’s mobility landscape by offering solutions tailored to meet the diverse needs of Dubai’s residents, alongside embracing technologies facilitating efficient operations and enhanced utilization.”
“Looking forward, we remain optimistic about Dubai’s steady population growth, underpinned by robust economic fundamentals and its status as a premier business and leisure destination. In addition to our expansion plans within Dubai, we discern promising opportunities to extend and diversify our services across neighboring emirates.”
Operational Highlights for Q1 2024:
DTC bolstered and expanded its offerings across all segments during the quarter. Collaborating with ENOC Group, the Company equipped its extensive fleet with mobile, secure, and automated refueling services, aimed at enhancing operational efficiency, cost optimization, comprehensive data delivery, and refining refueling operations.
In the taxi segment, DTC introduced new services for individuals with non-motor disabilities through the ‘DTC App’, enabling the booking of regular taxis at discounted rates instead of specialized taxis equipped for wheelchair users. This service underscores DTC’s commitment to serving and empowering the populations it caters to, augmenting its existing services for people of determination.
Continuing to leverage its exclusivity agreements at key locations across Dubai, DTC further strengthened these partnerships to conveniently deliver VIP limousine services and expand its taxi fleet at Dubai Airports.
The delivery bikes segment sustained rapid growth driven by robust demand for delivery partners from e-commerce providers and aggregators. DTC forged new industry partnerships to capitalize on this demand and increased its fleet of delivery bikes by 235 to 987 bikes during the quarter.
Outlook:
DTC maintains a positive outlook across all segments, buoyed by Dubai’s robust economic prospects, forecasted resident population Compound Annual Growth Rate (“CAGR”) of 2.8% between 2023 and 2040, alongside a tourist visits CAGR of 20.5% between 2023 and 2025. Dubai retained its top position on Tripadvisor Travellers’ Choice Awards for 2024 for the third consecutive year, further fueling growth in visitor numbers, with 5.18 million international visitors welcomed in the first quarter of 2024, marking an 11% year-on-year increase.
With the procurement of new taxi licenses and the expansion of airport taxis, DTC is strategically positioned to capitalize on the emirate’s robust growth while continuing its expansion into neighboring emirates and exploring opportunities for market consolidation.
Source: Emirates 24|7
