Dubai Taxi Company, listed on the Dubai Financial Market, announced its financial results for the three months ending March 31, 2024, as the company continued to achieve rapid and strong growth in the first quarter of 2024, with excellent financial performance and continuing to implement its strategy to expand its fleet and increase profit margin.
Dubai Taxi said its revenues rose 16 percent to Dh558.4 million (about $152 million) in the first quarter, thanks to improved financial performance across all its divisions.
Dubai Taxi’s taxi segment posted strong growth during the quarter, with revenues up 15 per cent year-on-year, driven by an increase in trips and the implementation of a new taxi fare, which was also supported by the addition of new taxis.
The Airport Taxi service is exclusively for passengers arriving at Dubai airports, offering world-class services at a reasonable cost. The exclusive agreements that Dubai Taxi has with several entities in areas with high demand for taxi passenger transport services in Dubai provide a significant competitive advantage over other operators in the city’s transportation sector.
The limousine segment also performed strongly, with revenues increasing 7 percent year-over-year and 17 percent quarter-over-quarter.
The company’s taxis and limousines completed 12 million trips during the quarter, an 8 per cent increase compared to the previous year, as it obtained 94 new taxi licenses in the recent RTA auction.
Bus sector revenues increased by 28 per cent compared to the previous year to reach AED 37 million, as a result of the increase in fleet size and new service contracts.
The delivery bikes segment performed exceptionally well, with revenues more than quadrupling year-on-year, and Dubai Taxi benefiting from the rapid growth of e-commerce and the increasing demand for on-demand delivery services.
The company’s strong revenues contributed to an increase in earnings before interest, taxes, depreciation and amortization by 40 percent compared to the previous year to reach AED 169.9 million, with a distinctive profit margin of 30 percent, and an increase of 5 percentage points compared to the previous year.
Dubai Taxi Corporation continues to leverage its business size and market position to achieve greater efficiency in its operations and employ the latest innovative technologies to achieve further progress and leadership.
Net profit for the first quarter of 2024, impacted by the imposition of corporate tax and financing costs, increased by 15 per cent compared to the previous year to reach AED 108.0 million. Excluding the impact of taxes, net profit increased by 26 per cent, and free cash flow for the first quarter reached AED 122.7 million.
Dubai Taxi maintained a healthy balance sheet during the first quarter, with a net debt to EBITDA ratio of 1.1x and a cash balance including agency deposits of AED 412.5 million.
Commenting on the impressive results, Mansoor Rahma Al Falasi, CEO of Dubai Taxi Corporation, said: “We maintained a strong performance in the first quarter of 2024, continuing to implement our growth-focused strategy, which contributed to a 15% YoY increase in revenues and a 40% increase in EBITDA. During the quarter, we announced doubling our Dubai Airports taxi fleet and secured 94 new taxi licenses at the recent RTA auction, cementing our position as the largest taxi operator in Dubai. We are committed to developing Dubai’s mobility landscape in light of the increasing urban areas in the emirate, providing solutions that meet the diverse needs of Dubai’s residents, and implementing smart technologies that improve the operational efficiency of our business and enhance the transportation experience, making it smoother and more efficient.”
Al Falasi added: “Our outlook for the future is optimistic, driven by the emirate’s ever-growing population, Dubai’s strong and thriving economy, and its position as a leading destination for business and leisure. In light of our plans to grow further in Dubai, we see attractive and distinct opportunities for expansion in the neighbouring emirates.”
Operational Highlights for Q1 2024
As part of its efforts to keep pace with development and rely on the best technologies and technological solutions to develop its services in all sectors during this quarter, Dubai Taxi Corporation has signed a partnership agreement with ENOC Group to provide its vehicles with mobile, safe and automated fueling services. This agreement will contribute to raising the operational efficiency of the Dubai Taxi fleet, rationalizing expenses, providing detailed data, and developing fueling operations.
In the taxi sector, Dubai Taxi Corporation has launched new services for people of determination with non-motor disabilities through its smart application DTC App, allowing them to book regular taxis instead of those equipped with wheelchair equipment, and obtain special discounts. This service highlights Dubai Taxi Corporation’s commitment to contributing to the integration and empowerment of people of determination in society and enhancing their happiness and quality of life.
Dubai Taxi continues to benefit from its exclusive agreements with several entities and institutions that allow it to provide its services in a number of Dubai landmarks, and to enhance these agreements and partnerships by providing customers with VIP limousine services, in addition to doubling the number of airport taxi vehicles.
The company’s delivery bike segment continues to grow at a rapid pace, driven by increased demand for delivery services from partners in the e-commerce and distribution sectors. Dubai Taxi continues to launch new partnerships to meet this demand, increasing its fleet from 235 to 987 delivery bikes during the quarter.
Future prospects
Dubai Taxi Corporation is looking forward to a promising future in all sectors, thanks to the strong expectations for the performance of Dubai’s economy, where the compound annual growth rate of the population is expected to increase by 2.8 percent between 2023 and 2040, in addition to a compound annual growth rate of tourist visits of 20.5 percent between 2023 and 2025.
Dubai has retained its title as the World’s Best Destination at the TripAdvisor Travellers’ Choice Awards 2024 for the third year in a row, the first time a city has achieved such an achievement. It also saw significant growth in visitor numbers, welcoming 5.18 million visitors in the first quarter of 2024, an 11 per cent increase compared to the previous year.
With the company obtaining new taxi licenses and doubling the number of airport taxis, Dubai Taxi Company is poised to capitalize on the strong growth witnessed by the emirate, while continuing its expansion in neighboring emirates and exploring merger and acquisition opportunities and others in the market.
