DTC Reports 20% YoY EBITDA Growth to AED 432.2 Million for 9M 2024

Photo : Dubai Government Media Office

Dubai Taxi Company PJSC (DTC), a leading provider of integrated mobility solutions in Dubai, announced its financial results for the nine months ended 30 September 2024, reporting impressive growth across all key segments. The company delivered a 13% year-on-year increase in revenue, reaching AED 1.60 billion, buoyed by strong performance in the taxi, limousine, and bus segments, along with a surge in its delivery bike operations.

DTC’s strategic fleet expansion and market share gains were key contributors to its solid performance. During the period, the company grew its operational taxi fleet by 444 vehicles, bringing the total number of taxis to 5,660. The company’s market share in the Dubai taxi sector rose to 46% by the end of September, reflecting its dominance and ongoing commitment to meeting the growing demand for its transportation services. Additionally, the company secured 300 new taxi licenses post-period, which are expected to further enhance its market presence.

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The limousine segment saw a steady 3% growth in revenue, reaching AED 89.1 million in the first nine months of 2024. The total number of trips completed across the taxi and limousine segments reached 36 million, marking a 5% year-on-year increase. Meanwhile, DTC’s bus division performed strongly, with a 27% increase in revenue, driven by new service contracts and the addition of 77 vehicles to its fleet.

A highlight of the company’s performance was its 20% year-on-year growth in EBITDA, which reached AED 432.2 million, with an impressive EBITDA margin of 27%, up 2 percentage points from the previous year. The company continued to optimize its operations through efficiency measures and sustainability initiatives, including the adoption of hybrid and electric vehicles. Over 85% of DTC’s taxi and limousine fleet is now environmentally friendly, supporting the UAE’s commitment to achieving net-zero emissions by 2050.

Net profit before tax, excluding interest costs, grew by 19% year-on-year to AED 319.3 million, reflecting the company’s strong operational efficiency. However, reported net profit saw a 7% decline to AED 247.1 million, mainly due to the introduction of corporate tax and rising interest costs in the UAE.

In addition to its operational success, DTC made significant strides in expanding its partnerships and enhancing its service offerings. The company entered into a strategic collaboration with Bolt, a global leader in the shared mobility space. This partnership will see Bolt launch its internationally recognized e-hailing platform in Dubai, with DTC securing exclusive operational rights in the emirate. This move will allow DTC to tap into Bolt’s global user base, significantly expanding its customer reach and providing new revenue streams, especially as the UAE moves toward an increased adoption of e-hailing services.

DTC’s continued focus on cost optimization and sustainability also helped improve its profitability. The company’s net debt to EBITDA ratio remains healthy at 1.3x, with a cash balance of AED 272.3 million as of 30 September 2024, ensuring the company has a solid financial footing for future investments and growth.

Commenting on the results, Mansoor Rahma Alfalasi, CEO of DTC, expressed optimism for the future. "Our strong results in 9M 2024 reflect the successful execution of our growth strategy, which includes expanding our fleet, increasing our market share, and building strategic partnerships to position DTC for future success," he said. "Dubai's economic strength and its position as a leading business and tourism hub provide a robust foundation for continued growth in the mobility sector."

DTC also remains well-positioned to benefit from Dubai’s vibrant macroeconomic environment, which is bolstered by steady population growth, increasing tourism, and significant government investment in infrastructure. The International Monetary Fund (IMF) has projected UAE economic growth of 4% in 2024, with a further increase to 5.1% by 2025, driving demand for mobility services.

Looking ahead, DTC is optimistic about its prospects, backed by Dubai's expanding transportation network, population growth, and increasing tourism. As Dubai Airports increases its passenger forecast to 93 million in 2024, DTC is poised to capture a larger share of the growing demand for transportation services in the emirate.

DTC’s expansion efforts are set to continue in the coming months, with ongoing investments in fleet upgrades, partnerships, and cutting-edge technology. As the company continues to innovate and evolve in the rapidly changing mobility landscape, it remains a key player in Dubai’s ambitious vision for a sustainable and efficient transportation ecosystem.

Operational Highlights for 9M 2024:

• Expanded operational fleet by 444 vehicles, bringing total to 5,660.
• Dubai taxi market share increased to 46%.
• Completed 36 million trips across taxi and limousine services, a 5% increase.
• Strong performance in the bus segment with 27% revenue growth.
• Strategic partnership with Bolt to introduce e-hailing platform in Dubai.

Outlook: DTC is well-positioned to capitalize on Dubai’s robust economic growth and the rising demand for mobility services. With a strong balance sheet and ongoing strategic initiatives, the company is confident about achieving sustainable long-term growth and continuing its market leadership in the transportation sector.