Dubai Taxi's Revenue Jumps 16% To AED 558.4 Million In First Quarter Of 2024

Dubai Taxi Company PJSC has recently unveiled its financial achievements for the first quarter ending 31st March 2024, showcasing a notable 16 percent increase in revenue year-on-year (YoY) to AED 558.4 million. This growth is attributed to advancements across all operational segments of the company. Specifically, the core taxi service segment reported a 15 percent rise in revenue, a result of an uptick in both the number of trips and their lengths, alongside elevated tariffs and the integration of additional taxis into the fleet.

The limousine service also displayed robust performance, with a 7 percent YoY revenue increase and a significant 17 percent rise quarter on quarter. Over this period, Dubai Taxi's taxis and limousines collectively completed 12 million trips, marking an 8 percent YoY increase. This surge in activity follows the acquisition of 94 new taxi licenses from the latest RTA auction. Furthermore, the bus segment saw a remarkable 28 percent YoY revenue jump to AED 37 million, propelled by an expanded fleet and new service contracts. The delivery bikes segment outperformed expectations, with revenues multiplying more than fourfold YoY, capitalizing on the booming e-commerce sector and the rising demand for on-demand delivery services.

The impressive revenue growth led to a substantial 40 percent YoY increase in EBITDA, reaching AED 169.9 million with an attractive margin of 30 percent, which is a 5 percentage point improvement from the previous year. Despite the new corporate tax introduction and finance costs, Q1 2024 net profit rose by 15% YoY to AED 108.0 million. Excluding tax impacts, net profit saw a 26% increase. The quarter also ended with a strong free cash flow of AED 122.7 million.

Dubai Taxi Company maintained a robust balance sheet through the quarter, highlighted by a highly attractive net debt to LTM-EBITDA ratio of 1.1x and a cash balance of AED 412.5 million, including Wakala deposits. CEO Mansoor Rahma Alfalasi commented on the results, emphasizing the sustained momentum into Q1 of 2024 with a significant revenue and EBITDA increase. He attributed this success to the company's effective growth strategy execution, including doubling the fleet of airport taxis and securing new taxi licenses.

Alfalasi further expressed confidence in Dubai's continuous population growth supported by strong economic fundamentals and its reputation as a premier business and leisure destination. He highlighted Dubai Taxi's commitment to enhancing Dubai’s mobility landscape by meeting the diverse needs of its residents and adopting technologies for efficient operations and utilization. Looking forward, Dubai Taxi Company sees promising opportunities for expansion within Dubai and into neighbouring emirates.

With inputs from WAM