Dubai Taxi Company Reports Stellar 54% Net Profit Increase In 2023, Approves AED 71M Dividend

Dubai Taxi Company PJSC (DTC) has unveiled its financial outcomes for the fiscal year ending on 31st December 2023, showcasing a robust performance and marking a significant milestone with its listing on the Dubai Financial Market (DFM) in December. The company reported an 11 percent increase in revenue year-on-year, reaching AED 1.95 billion. This growth is attributed to the enhanced performance of its Taxi segment, which saw a rise in the number of trips, bolstered by Dubai's expansion and exclusive agreements in key city areas, including Dubai International Airport (DXB).

The fleet size of DTC expanded to over 7,400 vehicles by the end of 2023, with Taxis and Limousines completing 46 million trips throughout the year, an 8 percent increase from the previous year. This surge in activity contributed to a 55 percent year-on-year increase in EBITDA, which stood at AED 490.5 million, reflecting a margin of 25 percent and a 7 percentage point increase from the prior year. The company attributed this growth to operational efficiencies driven by technology adoption, including an advanced control centre for optimising fleet distribution and the increased use of e-hailing services to enhance customer experiences.

Net Profit for FY 2023 was reported at AED 345.3 million, marking a 54 percent increase from the previous year, with Free Cash Flow reaching AED 129 million. DTC maintained a strong balance sheet throughout the year, highlighted by an attractive net debt to EBITDA ratio of 1.3x. The company also secured a term loan of AED 1.0 billion with a five-year maturity and a revolving credit facility of AED 200 million, which remained untapped during FY 2023.

Abdul Muhsen Ibrahim Kalbat, DTC’s Chairman, commented on the financial results, emphasizing the company's strong performance post-IPO and its strategic positioning for long-term growth and shareholder value creation. He highlighted Dubai's urban development and tourism growth as key drivers behind DTC's success.

Mansoor Rahma Alfalasi, DTC’s CEO, reflected on the company's achievements in FY 2023, including revenue growth and net profit increase. He pointed out DTC's strategic initiatives in expanding its fleet and implementing smart technologies across segments. Alfalasi also underscored DTC's significant role in enhancing Dubai's transportation infrastructure and its potential for expansion into neighbouring emirates.

The Board of Directors has proposed a dividend payout of AED 71 million for Q4 2023, amounting to 2.84 fils per share, pending shareholder approval at the upcoming Annual General Meeting (AGM). The dividend is expected to be distributed in April 2024, aligning with the company's IPO commitment.

With inputs from WAM