Dubai Taxi Company Reports Robust 9M 2024 Growth
Dubai Taxi Company PJSC shows impressive growth in 9M 2024, with revenue and EBITDA rising significantly.
Summary
Dubai Taxi Company PJSC has reported a 20% YoY increase in EBITDA to AED 432.2 million and a 13% rise in revenue to AED 1.60 billion for 9M 2024.
Dubai Taxi Company PJSC (DTC), a leading provider of mobility solutions in Dubai, has announced robust financial results for the first nine months of 2024. The company reported a 20% year-on-year increase in EBITDA, reaching AED 432.2 million, and a 13% rise in revenue to AED 1.60 billion. This growth is attributed to the expansion of its taxi fleet and strategic partnerships, such as the collaboration with Bolt to launch an international e-hailing platform in Dubai.
DTC's market share in Dubai's taxi sector increased to 46% as of September 2024, further solidifying its position as the market leader. The company expanded its operational taxi fleet by 444 vehicles, bringing the total to 5,660. This expansion, alongside an increase in the number of trips and average trip length, drove a 12% year-on-year revenue growth in the taxi segment to AED 1.39 billion.
The limousine segment also showed steady growth, with a 3% increase in revenue to AED 89.1 million. Overall, DTC's taxis and limousines completed 36 million trips in 9M 2024, a 5% increase year-on-year. The bus segment achieved a 27% revenue increase to AED 87.7 million, supported by new service contracts and the addition of 77 vehicles to its fleet.
Notably, DTC's delivery bike segment experienced rapid expansion, with revenue growing 2.5 times, thanks to partnerships with major delivery aggregators like Talabat. This diversification of services has been crucial in driving the company's overall growth.
DTC's focus on operational efficiencies and sustainability is evident, with more than 85% of its taxi and limousine fleet consisting of hybrid or electric vehicles. This commitment to sustainability not only supports cost optimization but also aligns with global environmental trends.
Given the company's strong financial performance, market leadership, and strategic initiatives, investors might consider holding onto their shares. While the company is on a growth trajectory, the market dynamics and potential competition should be monitored closely.
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Summary
Dubai Taxi Company PJSC (DTC) reported a 20% year-on-year increase in EBITDA to AED 432.2 million for the first nine months of 2024, with revenue rising 13% to AED 1.60 billion. The company expanded its operational taxi fleet by 444 vehicles, achieving a 46% market share in Dubai and completing 36 million trips, a 5% increase from the previous year. The EBITDA margin improved by 2 percentage points to 27%. Net profit before tax reached AED 271.8 million, a 19% increase excluding interest costs. DTC formed a strategic partnership with Bolt to launch an international e-hailing platform in Dubai. The company's taxi segment revenue grew 12% to AED 1.39 billion, while the limousine segment saw a 3% increase to AED 89.1 million. The bus segment's revenue rose 27% to AED 87.7 million, supported by new service contracts and fleet expansion. DTC's delivery bike segment, boosted by partnerships with delivery platforms like Talabat, saw revenue grow 2.5 times. The company focuses on cost optimization and sustainability, with over 85% of its taxi and limousine fleet now hybrid or electric vehicles.
