Dubai Taxi Company PJSC Reports Impressive H1 2024 Results with 27% EBITDA Growth

Dubai Taxi Company PJSC (DTC), the leading provider of comprehensive mobility solutions in Dubai, has delivered a stellar performance in the first half of 2024. The company reported a 27% year-on-year increase in EBITDA, reaching AED 309.3 million, and a 14% rise in revenue to AED 1.09 billion. This robust performance underscores DTC's successful execution of its growth strategy, which includes expanding its taxi fleet and forging new strategic partnerships.

The core taxi segment, which forms the backbone of DTC's operations, saw a revenue increase of 12% year-on-year to AED 939.0 million. This growth was driven by an increase in trips and trip lengths, as well as the expansion of the operating fleet by 294 vehicles following the award of new taxi licenses in Q1 2024. The segment also benefited from higher tariffs set by the Road and Transport Authority (RTA) and an increase in the proportion of dedicated airport taxis, where DTC holds exclusive operational rights and charges higher tariffs.

The limousine segment also posted positive results, with revenue climbing 6% year-on-year to AED 61.7 million. This growth was supported by fleet expansion and higher tariffs. In total, DTC's taxis and limousines completed 23 million trips during the period, marking a 4% year-on-year increase.

DTC's bus segment achieved remarkable growth, with revenue rising by 26% year-on-year to AED 72.0 million. This was driven by the award of new service contracts and an increase in fleet size. The company's bike segment continued its exponential growth trajectory, with revenue nearly tripling year-on-year, supported by overall market expansion and the formation of new partnerships.

The company's strong revenue performance translated into a 27% year-on-year increase in EBITDA, with an attractive margin of 28%. DTC's focus on cost optimization through increased asset utilization and the adoption of fuel-efficient vehicles, in line with its sustainability commitments, contributed to this impressive result. Despite the introduction of interest and corporate tax, net profit for H1 2024 stood at AED 187.4 million, up 11% excluding the tax impact.

In line with its policy to distribute at least 85% of annual net profit, the Board has approved dividends of AED 159.3 million for H1 2024. This move reflects the company's commitment to delivering value to its shareholders.

While DTC's performance in H1 2024 has been impressive, potential investors should consider the impact of new taxes and the competitive landscape in the mobility sector. The company's strong market position and strategic initiatives position it well for future growth, but ongoing market dynamics warrant a cautious approach.

Given the current performance and market conditions, it is advisable for investors to hold their positions in DTC. The company's strong fundamentals and growth prospects make it a valuable asset, but monitoring market developments and company performance remains crucial.