(MENAFN- Khaleej Times) Dubai Taxi Company PJSC announced its financial results for the three months ending March 31, 2024, with revenue increasing by 16 per cent year-on-year to Dh558.4 million, driven by revenue improvement across all its segments.
DTC's core taxi segment achieved solid growth during the quarter, with revenue up 15 per cent year-on-year, driven by increased trips and trip lengths as well as higher tariffs, which was also supported by the additional taxis added to the fleet.
Its limousine segment also witnessed solid performance with revenue increasing 7 per cent year-on-year and 17per cent quarter on quarter. The company's taxis and limousines completed 12 million trips during the quarter, an increase of eight per cent year-on-year, as it acquired 94 new taxi licences at the latest RTA auction.
The bus segment revenue increased by 28 per cent year-on-year to Dh37 million also driven by the increase in fleet size and new service contracts. The delivery bikes segment delivered a standout performance, with revenue increasing more than four times year-on-year, as DTC capitalised on rapidly growing e-commerce penetration and surging demand for on-demand delivery services.
The company's strong revenue performance resulted in a 40 per cent year-on-year increase in Ebitda to Dh169.9 million, at an attractive margin of 30 per cent, up 5 per centage points on the prior year. DTC continues to leverage its scale and market positioning to drive operational efficiencies and lead the industry in technology adoption. Q1 2024 net profit, which was impacted by the introduction of corporate tax as well as finance costs, was up 15 per cent year-on-year to Dh108.0 million. Excluding the tax impact, net profit increased 26 per cent. Free cash flow for the quarter was Dh122.7 million maintained a healthy balance sheet during the quarter, with a highly attractive net debt to LTM-Ebitda ratio of 1.1x and a cash balance of Dh412.5 million, including Wakala deposits.
DTC's CEO, Mansoor Rahma Alfalasi, added,“We maintained strong momentum into the first quarter of 2024, delivering revenue growth of 15 per cent year-on-year which drove a 40 per cent increase in Ebitda, as we continued to execute on our growth strategy. During the quarter, we announced the doubling of our fleet of airport taxis and acquired 94 new taxi licences at the latest RTA auction, further cementing our position as the largest taxi operator in Dubai. We are committed to supporting Dubai's mobility landscape as the emirate's urban areas continue to expand by offering solutions that meet the diverse needs of Dubai's residents and through adopting technologies that enable efficient operations and enhance utilisation.”
“Looking ahead, we are confident in the steady growth of Dubai's population underpinned by strong economic fundamentals and its status as a leading business and leisure destination. In addition to our plans to grow further in Dubai, we see attractive opportunities to expand and broaden our services in neighbouring emirates.”
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