Revenue Increased 13% to AED 1.60 billion
• Operational taxi fleet expanded by 444 vehicles since the start of the year
• Dubai taxi market share increased to 46% as of 30 September 2024
• 36 million trips completed across the taxi and limousine segments in 9M 2024, up 5% year-on-year
• Attractive EBITDA margin of 27%, up 2 percentage points year-on-year
• Net Profit before tax of AED 271.8 million, up 19% excluding interest cost
• Strategic partnership with Bolt to launch leading international e-hailing platform in Dubai
Dubai Taxi Company PJSC (“DTC” or the “Company”), a leading provider of comprehensive mobility solutions in Dubai, today announced its financial results for the nine months ended 30 September 2024 (“9M 2024” or the “Period”).
DTC maintained strong momentum during the first nine months of 2024 as it continued to execute on its strategy of fleet expansion and expanding its lucrative exclusivity agreements. Revenue for the period increased 13% year-on-year to AED 1.60 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% year-on-year to AED 1.39 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% year-on-year to AED 89.1 million in 9M 2024. The Company’s taxis and limousines completed 36 million trips during the period, up 5% 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% year-on-year to AED 87.7 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% year-on-year increase in EBITDA to AED 432.2 million, at an attractive margin of 27%. 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% environmentally friendly, consisting of either hybrid or electric vehicles.
Profit before tax and interest costs increased 19% year-on-year to AED 319.3 million. This is a comparable metric year-on-year as corporate tax was not payable in 2023. Reported net profit declined 7% year-on-year to AED 247.1 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 AED 272.3 million, including Wakala deposits, as of 30 September 2024.
Commenting on the Company’s 9M 2024 results, 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% year-on-year with EBITDA margin increasing 2 percentage points to 27%, as we consolidated our market leadership, increasing our Dubai taxi market share to 46%, 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.”
“Our optimism for the future is underpinned by our ongoing strategic execution and Dubai’s leading position as a family, business and leisure destination, with strong macroeconomic tailwinds enabling population growth and urban expansion. Together, these factors will contribute to our long-term and sustainable growth.”
9M 2024 Operational Highlights
DTC continued to make strides across its operation. The Company was awarded 300 new taxi licences at the Road and Transport Authority auction during the third quarter, which increases its Dubai taxi market share to 46%. The additional taxis are expected to generate an additional AED 100 million in annual revenue, with 25% of the new licences to be allocated to electric taxis. This underlines the Company’s commitment to sustainability and meeting the UAE’s net zero by 2050 emissions target.
Post-period, the Company announced its partnership with Bolt, the global shared mobility platform, which will see Bolt launch its e-hailing platform in Dubai, with DTC receiving exclusive operational rights in the emirate. The partnership will enable DTC to unlock a greater share of the overall taxi and e-hailing sector, while contributing to Dubai’s directives to transition 80% of taxi trips to e-booking in the coming years. DTC will utilise infrastructure and technology created by Bolt and will benefit from Bolt's global footprint, allowing it to tap into a worldwide customer base of tourists and business travellers that visit Dubai.
Outlook
DTC has 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% between 2023 and 2040, as well as a tourist visitor CAGR of 20.5% 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% of the airport’s total traffic today, compared to 40% before the pandemic, underscoring the city’s status as a growing tourism and business destination. Additionally, the International Monetary Fund (IMF) projected that the UAE economy would expand by 4% this year, rising to 5.1% in 2025. Meanwhile, Dubai unveiled its largest government budget for the period 2025 to 2027, totalling expenses of AED 272 billion, with 46% of next year’s budget allocated to infrastructure, including the road network.
DTC is positioned to capture value from the emirate’s robust growth while its investments in technology and partnerships will continue to unlock exciting new growth opportunities.
About DTC
DTC was recognised as a public joint stock company under Law No. (21) of 2023. The Company is a leading provider of comprehensive mobility solutions in Dubai, operating a fleet of more than 9000 vehicles, including more than 6000 taxis. DTC was established in 1994 to operate a fleet of taxis and has since expanded to offer an extensive range of integrated mobility solutions across four key business lines: taxis, VIP limousines, buses and last mile delivery bike services. DTC is the number one taxi operator by fleet size in Dubai with an approximately 46% market share. In 2023, the Company's taxis and limousines completed 46 million trips.
