Dubai Taxi to pay $43m dividend despite profit drop

Dubai Taxi Company, a subsidiary of the emirate’s transport regulator, has approved a dividend payout of AED159 million ($43 million) for the first half of 2024 despite a marginal 1 percent increase in net profit.

Net earnings reached AED187.4 million in the first six months of the year, compared to AED186.3 million at the same time last year, impacted by interest and corporate tax introduction.

Revenue grew 14 percent year on year to just over AED1 billion.

The core taxi segment reported a 12 percent annual revenue rise to AED939 million, driven by increased trips and trip lengths. The fleet size reached 294 vehicles after new taxi licences were awarded in the first quarter.

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Limousine business revenue increased 6 percent to AED61.7 million, supported by fleet expansion and higher tariffs. Total trips by taxis and limousines reached 23 million, up 4 percent year on year.

The bus segment rose 26 percent to AED72 million, driven by new service contracts and increased fleet size.

Net profit for the second quarter fell 14 percent to AED79.4 million despite revenue rising 12 percent to AED531.2 million.

The company will pay the interim dividend in August 2024. Its target is to distribute a semi-annual dividend of at least 85 percent of annual net profit.