DTC Achieves FY2023 Net Profit Growth of 54% YoY to $345.3 Million

Dubai Taxi Company PJSC (“DTC” or the “Company”), a leading provider of comprehensive mobility solutions in Dubai, today announced its consolidated financial results for the year ended December 31, 2023 (“FY 2023” or the “Anus”).

DTCs delivered strong performance throughout 2023, while completing its historic listing on the Dubai Financial Market (“DFM”) in December. Revenue for the year increased 11% year-on-year to AED 1.95 billion, mainly driven by the strong performance of its taxi segment as the number of trips increased during the period, supported by strong growth in Dubai and the DTC exclusivity agreements in high volumes. areas of the city, including Dubai International Airport (“DXB”). DTCsIts fleet size at the end of 2023 was more than 7,400 vehicles, and its taxis and limousines completed 46 million trips in 2023, an 8% year-on-year increase.

Strong revenue performance resulted in a 55% year-on-year increase in EBITDA to AED 490.5 million, a 25% margin and an increase of 7 percentage points year-on-year, supported by DTC’s continued focus on driving efficiency operational through the adoption of technology. , with initiatives including its state-of-the-art control center that optimizes fleet distribution and the increased adoption of e-hailing to improve the customer journey. Net profit was AED 345.3 million in FY2023, up 54% year-on-year, with free cash flow of AED 129 million.

DTCs maintained a healthy balance sheet during the year, with a very attractive net debt/EBITDA ratio of 1.3x. The Company obtained a term loan of AED 1 billion in fiscal 2023 with a maturity of 5 years, as well as a revolving credit facility of AED 200 million, of which there were no drawdowns in fiscal 2023.

Commenting on DTC’s fiscal 2023 results, DTC Chairman HE Abdul Muhsen Ibrahim Kalbat, saying:

“Our strong set of maiden results following our successful IPO in DFM in December 2023, highlights the strength of our business, which is supported by Dubai’s growth, our leading market position and a supportive regulatory environment. DTC has a well-defined vision and strategy that leverages Dubai’s ambitious urban development and strong tourism and resident growth, ensuring we are well positioned to deliver long-term growth and value creation for our shareholders. “I am also pleased to confirm that the DTC board has recommended a dividend payment of AED 71 million for the fourth quarter of 2023, in line with our IPO commitment and subject to shareholder approval.”

DTC CEO Mansoor Rahma Alfalasi aggregate:

“Following our successful IPO in DFM, DTC delivered a good set of results: revenue increased 11% year-on-year to AED 1.95 billion in 2023, driving a 54% increase in net profit. During the year we continued to advance our strategic priorities, expanding our fleet and implementing smart technologies to drive efficiency in all segments. With a leading share of the taxi market in Dubai and several opportunities to expand to neighboring emirates, DTC plays a pivotal role in connecting people and developing the country’s world-class transportation infrastructure.

“Looking ahead, we see a conducive environment for growth driven by Dubai’s status as a premier tourism destination and the expansion of the emirate’s urban areas.”

Board approves fourth quarter 2023 dividend

The Company’s Board of Directors approved its first dividend of AED 71 million, equivalent to 2.84 fils per share for the fourth quarter of 2023, subject to shareholder approval at the Annual General Meeting (“AGM”) of the Company, which is expected to ship in April 2024. .

Fiscal 2023 Operational Highlights

DTC iimplemented the use of artificial intelligence in its control center, monitoring its entire fleet of taxis, limousines, buses and delivery bicycles to ensure safety and efficiency while redirecting services to high-demand areas.

Taxis: Launched In-Safe Hands service on DTC app that allows parents to pre-book taxis on a daily, weekly or monthly basis to transport their children to and from school, offering a safe and convenient service for students living in areas to which school buses do not serve. .

Limousines: Signed an agreement with Dubai World Trade Center to provide 24/7 limousine services for its visitors and exhibitors, cementing the company’s position as a provider of premium transportation services in Dubai’s most prominent locations .

Buses: Implemented high-tech features on its fleet of school buses to ensure student safety on all trips. These include surveillance cameras, a system to detect the movement of students in transit and an emergency alert system to establish immediate contact with emergency services.

Delivery bikes: Launched in September 2022, the Company’s delivery segment has grown substantially to over 752 bikes by the end of 2023. During the year, DTC signed new agreements with Noon and Etisalat Smiles for last-mile delivery services, as it continues to scale the delivery segment.

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DTCs has a positive outlook across all segments, reinforced by Dubai’s strong economic prospects with a projected compound annual growth rate (“CAGR”) of 2.8% between 2023 and 2040, and a tourism CAGR of 20.5% between 2023 and 2025. In addition, the Dubai Urban Master Plan 2040which will see the development of new urban clusters across Dubai, is expected to drive greater demand for taxis and limousines. DTCs is in a strong position to capture value from this growth by continuing to execute its well-defined fleet expansion strategy and operational efficiency improvements, while continuing its expansion into neighboring emirates and exploring market consolidation opportunities.

News source: Dubai Press Office