Dubai Taxi Company delivers 2023 net profit growth of 54% YoY to AED345.3 Mn

Dubai Taxi Company PJSC (DTC), today announced its financial results for the year ended 31st December 2023, delivering a strong performance while also completing its landmark listing on the Dubai Financial Market (DFM) in December.

Revenue for the year increased 11 percent year-on-year (YoY) to AED 1.95 billion, primarily driven by the strong performance of its Taxi segment as the number of trips increased during the period, supported by the strong growth of Dubai and DTC’s exclusivity agreements in high-volume areas of the city, including Dubai International Airport (DXB).

DTC’s fleet size at the end of 2023 was more than 7,400 vehicles, with its Taxis and Limousines completing 46 million trips in 2023, an increase of 8 percent YoY.

The strong revenue performance resulted in a 55 percent YoY increase in EBITDA to AED 490.5 million, a margin of 25 percent and an increase of 7 percentage points year-on-year, supported by DTC’s continued focus on driving operational efficiencies through technology adoption, with initiatives including its state-of-the-art control centre optimising fleet distribution and the increased adoption of e-hailing improving the customer journey.

Net Profit was AED 345.3 million in FY 2023, up 54 percent YoY, with Free Cash Flow of AED 129 million.

DTC maintained a healthy balance sheet during the year, with a highly attractive net debt to EBITDA ratio of 1.3x. The Company secured a AED 1.0 billion term loan in FY 2023 with a maturity of 5 years as well as a revolving credit facility of AED 200 million, from which there were no drawdowns in FY 2023.

Commenting on DTC’s FY 2023 results, DTC’s Chairman Abdul Muhsen Ibrahim Kalbat said, “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. I am also pleased to confirm that DTC’s Board has recommended a dividend payout of AED 71 million for Q4 2023, in line with our IPO commitment and subject to shareholder approval.”

DTC’s CEO Mansoor Rahma Alfalasi added, “Following our successful IPO on the DFM, DTC delivered a good set of results with Revenue increasing 11 percent year-on-year to AED 1.95 billion in 2023, 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. Looking ahead we see a supportive environment for growth driven by Dubai’s status as a premier tourist destination and the expansion of the emirate’s urban areas.”

The Company’s Board of Directors has approved its first dividend of AED 71 million, amounting to 2.84 fils per share for Q4 2023, subject to shareholder approval at the Company’s Annual General Meeting (AGM), which is expected to be distributed in April 2024.