Revenue Growth and EBITDA Surge
Dubai Taxi Company on Tuesday released cheerful financial results for the six-month period ending June 30, 2024. Revenues surged by a massive 14 percent year-on-year to AED 1.09 billion during this period. This sterling revenue performance translated into a notable 27 percent year-on-year rise in EBITDA, surging to AED 309.3 million.
PC: Emirates News Agency
Core Segments Perform Well
The core taxi segment witnessed robust growth, with revenues of AED 939.0 million that marked an increase of 12% year-on-year. In other words, it shows that the company has a solid market status and operational efficiency in the main service area of the firm. If not, then the limousine segment fared well too, with a 6% year-over-year rise to AED 61.7 million of revenues.
Expansion and Trip Completion
Its taxis and limousines together covered 23 million trips during the first half of 2024, which represented a 4% year-over-year increase. The growth in trip completions was driven by both higher demand and increased capacity to provide service.
Bus and Bike Segments Achieve Notable Growth
Its bus segment did outstandingly well and posted a 26% year-on-year revenue growth to AED 72.0 million, due to the successful expansion and improved services provided by DTC in public transport. The bike segment did spectacularly too, with its revenues almost doubling compared to the previous year. It reflects the increasing popularity of cycles as an alternate mode of green transportation.
Dividend Declaration and Fleet Expansion
Its Board of Directors has further adopted a dividend payout of AED 159.3 million for the first half of 2024 in support of its attractive dividend policy. This represents at least 85% of the annual net profit and reaffirms the Company’s commitment to generating high returns for shareholders.
According to DTC’s Chief Executive, Mansoor Rahma Alfalasi, the company’s strategic investments have been instrumental in adding 294 more vehicles to its fleet following the successful award of new taxi licences in Q1 2024. DTC has been able to further consolidate and strengthen market leadership with an achieved 45% share of Dubai’s taxi market.
The sound market position and growth trend in all service segments of Dubai Taxi Corporation was underscored by the company’s quite impressive performance in the first half of 2024. The DTC growth story—supported by strong revenue growth, outstanding EBITDA growth, and strategic expansion at the fleet level—bodes well for the leadership role it seeks to continue assuming in the transport sector within Dubai, ensuring value for shareholders.
