Dubai Taxi 2023 profit up 54% as trip numbers rise

Reuters

Dubai Taxi Company, a subsidiary of the emirate’s transport regulator, said net profit surged 54 percent year on year to AED345 million ($94 million) in 2023, as fleet size and trips increased.

Revenue increased 11 percent year on year to AED2 billion, primarily driven by the strong performance of its taxi segment, supported by Dubai’s growth and agreements in high-volume areas of the city, including Dubai International Airport.

Fleet size reached 7,400 vehicles by year-end, with its taxis and limousines completing 46 million trips, an increase of 8 percent year on year.

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Ebitda rose 55 percent annually to AED 490 million due to continued focus on driving operational efficiencies through technology adoption and increased adoption of e-hailing.

The company’s net debt to Ebitda ratio stood at 1.3 times. DTC secured a AED1 billion term loan last year with a maturity of five years and a revolving credit facility of AED200 million but no drawdowns yet.

The taxi operator’s board recommended a dividend payout of AED71 million for Q4 2023, subject to shareholders’ approval. The dividend distribution is planned for next month.

DTC maintains a “positive outlook” across all segments, bolstered by Dubai’s strong economic outlook with a forecasted annual population growth rate of 2.8 percent between 2023 and 2040.

Additionally, the Dubai 2040 urban master plan, which will develop new urban clusters across the emirate, is expected to drive increased demand for taxis and limousines.

DTC is in a strong position to capture value from this growth and will continue its expansion into neighbouring emirates and explore market consolidation opportunities.