Dubai Taxi Company PJSC announced its financial results for the three months ending 31st March 2024, with revenue increased by 16 percent year-on-year (YoY) to AED 558.4 million, driven by revenue improvement across all its segments.

DTC’s core taxi segment achieved solid growth during the quarter, with revenue up 15 percent YoY, driven by increased trips and trip lengths as well as higher tariffs, which was also supported by the additional taxis added to the fleet.

Its limousine segment also witnessed solid performance with revenue increasing 7percent YoY and 17perent quarter on quarter. The Company’s taxis and limousines completed 12 million trips during the quarter, an increase of 8 percent YoY, as it acquired 94 new taxi licenses at the latest RTA auction.

The bus segment revenue increased by 28percent YoY to AED 37 million also driven by the increase in fleet size and new service contracts. The delivery bikes segment delivered a standout performance, with revenue increasing more than four times YoY, as DTC capitalised on rapidly growing e-commerce penetration and surging demand for on-demand delivery services.

The Company’s strong revenue performance resulted in a 40 percent YoY increase in EBITDA to AED 169.9 million, at an attractive margin of 30 percent, up 5 percentage points on the prior year. DTC continues to leverage its scale and market positioning to drive operational efficiencies and lead the industry in technology adoption. Q1 2024 net profit, which was impacted by the introduction of corporate tax as well as finance costs, was up 15% YoY to AED 108.0 million. Excluding the tax impact, net profit increased 26%. Free cash flow for the quarter was AED 122.7 million. DTC maintained a healthy balance sheet during the quarter, with a highly attractive net debt to LTM-EBITDA ratio of 1.1x and a cash balance of AED 412.5 million, including Wakala deposits.

DTC’s CEO, Mansoor Rahma Alfalasi, added, “We maintained strong momentum into the first quarter of 2024, delivering revenue growth of 15 percent year-on-year which drove a 40 percent increase in EBITDA, as we continued to execute on our growth strategy. During the quarter, we announced the doubling of our fleet of airport taxis and acquired 94 new taxi licences at the latest RTA auction, further cementing our position as the largest taxi operator in Dubai. We are committed to supporting Dubai’s mobility landscape as the emirate’s urban areas continue to expand by offering solutions that meet the diverse needs of Dubai’s residents and through adopting technologies that enable efficient operations and enhance utilisation.”

“Looking ahead, we are confident in the steady growth of Dubai’s population underpinned by strong economic fundamentals and its status as a leading business and leisure destination. In addition to our plans to grow further in Dubai, we see attractive opportunities to expand and broaden our services in neighbouring emirates.”