In its first full-year financial result since getting listed on the Dubai Financial Market (DFM), Dubai Taxi Company (DTC) reported a revenue increase of 11 percent from the past year to AED1.95 billion ($530 million) for the financial year 2023.
The growth was driven by the strong performance of its taxi segment as the number of trips increased during the period 46 million trips, an increase of 8 percent YoY, supported by the strong growth of Dubai and DTC’s exclusivity agreements in high-volume areas, including Dubai International Airport.
DTC’s fleet size at the end of 2023 was more than 7,400 vehicles.
The revenue growth resulted in a 55 percent YoY increase in EBITDA to AED490.5 million ($133.56 million), a margin of 25 percent and an increase of 7 percentage points YoY. Net profit was AED345.3 million ($94 million), up 54 percent YoY, with free cash flow of AED129 million ($35.1 million).
The numbers were supported by DTC’s continued focus on driving operational efficiencies through technology adoption, with initiatives including its modernised control centre that optimises fleet distribution and the increased adoption of e-hailing.
Mansoor Rahma Alfalasi, CEO of DTC, commented: “Following our successful IPO on the DFM, DTC delivered a good set of results with revenue increasing 11 percent year-on-year, driving a 54 percent rise in net profit. During the year, we continued to make strides with our strategic priorities, expanding our fleet and implementing smart technologies to drive efficiency across segments.
“With a leading taxi market share in Dubai and several opportunities to expand into neighbouring emirates, DTC plays an instrumental role in connecting people and developing the nation’s world-class transportation infrastructure.”
DTC’s positive stance
The company said in a filing that it maintained a positive outlook across all segments, bolstered by Dubai’s strong economic outlook with a forecasted population growth of 2.8 percent CAGR between 2023 and 2040, and a tourism CAGR of 20.5 percent between 2023 and 2025. DTC also expected increased demand because of Dubai 2040 Urban Master Plan, which will see the development of new urban clusters across the emirates.
Abdul Muhsen Ibrahim Kalbat, DTC Chairman, added: “Our strong inaugural set of results following our successful IPO on DFM in December 2023, highlights the strength of our business, which is underpinned by the growth of Dubai, our market-leading position and a supportive regulatory environment.
“DTC has a well-defined vision and strategy that capitalises on Dubai’s ambitious urban development and robust resident and tourism growth, ensuring we are well positioned to deliver long-term growth and value creation for our shareholders.”
The company maintained a healthy balance sheet during the year, with a highly attractive net debt to EBITDA ratio of 1.3x. The company secured an AED1 billion ($270 million) term loan in FY 2023 with a maturity of five years, as well as a revolving credit facility of AED200 million, from which there were no drawdowns during the year.
DTC Board approved its first dividend of AED71 million ($19.33 million), amounting to 2.84 fils per share for Q4 2023, subject to shareholders’ approval. This is expected to be distributed in April.
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