Full Year Revenue up 11% to AED 1.95 billion
- Strong first full year financial results following successful IPO on DFM in December 2023
- Revenue up 11% YoY to AED 1.95 billion with 46 million trips completed across the Taxi and Limousine segments in 2023, up 8% YoY
- EBITDA increased 55% YoY to AED 490.5 million, with margin increasing to 25%
- Board approves Q4 2023 dividend of AED 71 million, expected to be distributed in April 2024
Dubai, UAE, 1 March 2024: Dubai Taxi Company PJSC (“DTC” or the “Company”), a leading provider of comprehensive mobility solutions in Dubai, today announced its financial results for the year ended 31 December 2023 (“FY 2023” or the “Year”).
DTC delivered a strong performance during 2023, while also completing its landmark listing on the Dubai Financial Market (“DFM”) in December. Revenue for the year increased 11% year on year to AED 1.95 billion, primarily driven by the strong performance of its Taxi segment as the number of trips increased during the period, supported by the strong growth of Dubai and DTC’s exclusivity agreements in high-volume areas of the city, including Dubai International Airport (“DXB”). DTC’s fleet size at the end of 2023 was more than 7,400 vehicles, with its Taxis and Limousines completing 46 million trips in 2023, an increase of 8% year on year.
The strong revenue performance resulted in a 55% year on year increase in EBITDA to AED 490.5 million, a margin of 25% and an increase of 7 percentage points year-on-year, supported by DTC’s continued focus on driving operational efficiencies through technology adoption, with initiatives including its state-of-the-art control centre optimising fleet distribution and the increased adoption of e-hailing improving the customer journey. Net Profit was AED 345.3 million in FY 2023, up 54% year-on-year, with Free Cash Flow of AED 129 million.
DTC maintained a healthy balance sheet during the year, with a highly attractive net debt to EBITDA ratio of 1.3x. The Company secured a AED 1.0 billion term loan in FY 2023 with a maturity of 5 years as well as a revolving credit facility of AED 200 million, from which there were no drawdowns in FY 2023.
Commenting on DTC’s FY 2023 results, DTC’s Chairman, H.E. Abdul Muhsen Ibrahim Kalbat, said: “Our strong inaugural set of results following our successful IPO on DFM in December 2023, highlights the strength of our business, which is underpinned by the growth of Dubai, our market leading position and a supportive regulatory environment. DTC has a well-defined vision and strategy that capitalises on Dubai’s ambitious urban development and robust resident and tourism growth, ensuring we are well positioned to deliver long-term growth and value creation for our shareholders. I am also pleased to confirm that DTC’s Board has recommended a dividend payout of AED 71 million for Q4 2023, in line with our IPO commitment and subject to shareholder approval.”
DTC’s CEO, Mansoor Rahma Alfalasi, added: “Following our successful IPO on the DFM, DTC delivered a good set of results with Revenue increasing 11% year-on-year to AED 1.95 billion in 2023, driving a 54% rise in Net Profit. During the year we continued to make strides with our strategic priorities, expanding our fleet and implementing smart technologies to drive efficiency across segments. With a leading taxi market share in Dubai and several opportunities to expand into neighbouring emirates, DTC plays an instrumental role in connecting people and developing the nation’s world-class transportation infrastructure.
“Looking ahead we see a supportive environment for growth driven by Dubai’s status as a premier tourist destination and the expansion of the emirate’s urban areas.”
Board Approves Q4 2023 Dividend
The Company’s Board of Directors has approved its first dividend of AED 71 million, amounting to 2.84 fils per share for Q4 2023, subject to shareholder approval at the Company’s Annual General Meeting (“AGM”), which is expected to be distributed in April 2024.
FY 2023 Operational Highlights
DTC implemented the use of artificial intelligence at its control centre monitoring its entire fleet of taxis, limousines, buses and delivery bikes to ensure safety and efficiency while redirecting services to areas of high demand.
Taxis: Launched the In-Safe Hands service on the DTC app which enables parents to pre-book taxis daily, weekly or monthly to transport their children to and from school, offering a safe and convenient service for students living in areas not serviced by school buses.
Limousines: Signed an agreement with Dubai World Trade Centre to provide 24/7 limousine services for its visitors and exhibitors, cementing the Company’s position as the provider of premium transportation services at Dubai’s most high-profile venues.
Buses: Deployed high-tech features on its fleet of school buses to ensure student safety on all journeys. These include surveillance cameras, a system to detect student movement in transit, and an emergency alert system for making immediate contact with the emergency services.
Delivery Bikes: Launched in September 2022, the Company’s delivery segment has grown substantially to over 752 bikes at 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.
Outlook
DTC has a positive outlook across all segments, bolstered by Dubai’s strong economic outlook with a forecasted population growth Compound Annual Growth Rate (“CAGR”) of 2.8% between 2023 and 2040, and a tourism CAGR of 20.5% between 2023 and 2025. Additionally, the Dubai 2040 Urban Master Plan, which will see the development of new urban clusters across Dubai, is expected to drive increased demand for taxis and limousines. DTC is in a strong position to capture value from this growth by continuing to execute its well-defined strategy of fleet expansion and operational efficiency improvements, while continuing its expansion into neighbouring emirates and exploring market consolidation opportunities.
Financial Highlights
| AED million | Q4 2023 | Q4 2022 | YoY growth(Q4 23 vs Q4 22) | FY 2023 | FY 2022 | YoY growth(FY 23 vs FY 22) |
| Revenue | 540 | 487 | 11% | 1,954 | 1,760 | 11% |
| Taxi | 466 | 427 | 9% | 1,713 | 1,533 | 12% |
| Limousine | 29 | 29 | – | 115 | 134 | (14%) |
| Bus | 38 | 30 | 27% | 107 | 90 | 19% |
| Delivery Bikes | 7 | 1 | 13x | 19 | 2 | 9x |
| EBITDA | 132 | 112 | 17% | 491 | 317 | 55% |
| EBITDA Margin (%) | 24% | 23% | 1 p.p. | 25% | 18% | 7 p.p. |
| Net Profit | 78 | 90 | (13%) | 345 | 224 | 54% |
| Net Debt (Cash) | 659 | (276) | 659 | (276) |
