DTC Reports Strong 19% YoY EBITDA Growth, Reaching AED 584.4 Million

Photo : Dubai Government Media Office

Dubai Taxi Company (DTC), a leading transport service provider in Dubai, has announced its financial results for the year ending December 31, 2024. The company reported strong growth in its first full year since going public, driven by Dubai’s increasing population, booming tourism industry, and urban expansion.

Strong Revenue Growth

DTC’s revenue for 2024 increased by 12% compared to the previous year, reaching AED 2.2 billion. This growth was seen across all business segments. The company’s taxi services generated AED 1.92 billion in revenue, marking a 12% rise from the previous year. This was due to an increase in trips and an expanded fleet.

DTC added 744 new taxis to its operations, bringing its total number of taxis to 5,960. The company also secured 994 additional license plates, boosting its market share to 47%. The limousine service also performed well, with revenue growing by 8% to AED 124.5 million, thanks to fleet expansion. Overall, DTC’s taxis and limousines completed more than 49 million trips in 2024, a 6% increase from 2023.

Growth Across All Segments

DTC’s bus service grew significantly, with revenue rising by 11% to AED 119.2 million, driven by new contracts and an expanded fleet. Meanwhile, the company’s delivery bike segment saw its revenue more than double, as it partnered with major food and parcel delivery services.

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The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 19% to AED 584.4 million, with a strong margin of 27%. DTC also continued investing in environmentally friendly vehicles, and now, more than 85% of its taxi and limousine fleet consists of hybrid or electric vehicles.

Net Profit and Financial Health

Despite the strong revenue growth, DTC’s net profit declined by 4% to AED 331.3 million. This drop was due to the introduction of corporate tax in the UAE and rising interest costs. However, when excluding these expenses, the company’s net profit actually increased by 18%.

DTC remains financially strong, with a healthy net debt-to-EBITDA ratio of 1.13x and a cash balance of AED 336.1 million as of December 31, 2024.

Leadership Statements

DTC’s Chairman, H.E. Abdul Muhsen Ibrahim Kalbat, expressed his confidence in the company’s future, saying, “Our strong performance in 2024 reflects our ability to grow alongside Dubai’s expanding economy. We are committed to offering top-class mobility services that support the emirate’s development plans. Our new five-year strategy aims to drive further growth, with a focus on electric and hybrid vehicles.”

DTC’s CEO, Mansoor Rahma Alfalasi, added, “This year has been a milestone for DTC as a public company. With a 12% increase in revenue and 19% growth in EBITDA, we have solidified our position as Dubai’s top taxi operator. Our partnership with Bolt has been a game-changer, with one million trips booked on the platform by mid-January. This supports Dubai’s plan to transition 80% of taxi trips to e-booking in the coming years.”

Bold Plans for the Future

DTC has introduced a new five-year strategy (2025-2029) to drive innovation and strengthen its position as the leading mobility service provider in the region. The plan aims for double-digit growth while maintaining a high dividend payout ratio.

Sustainability remains a key focus, with DTC investing further in eco-friendly vehicles and technology to reduce emissions and support Dubai’s environmental goals.

Success of Bolt Partnership

DTC’s recent partnership with Bolt, a global e-hailing platform, has already shown strong results. Launched in December 2024, the platform completed one million trips within just a month. The next phase will integrate taxi services, making transportation more convenient for users. This partnership also helps DTC tap into international markets, benefiting from Dubai’s status as a global tourism hub.

Dividend Announcement

DTC’s Board of Directors has recommended a final dividend of AED 122.3 million for the second half of 2024, bringing the total dividend payout for the year to AED 281.6 million. This aligns with the company’s commitment to distributing at least 85% of its annual net profit to shareholders.

Positive Outlook for 2025 and Beyond

DTC remains optimistic about its future, with Dubai’s population expected to grow at an annual rate of 2.7% until 2040. In 2024, the city recorded its highest population growth since 2018, reaching 3.83 million residents. Additionally, Dubai welcomed 18.72 million international tourists in 2024, a 9% increase from the previous year.

With a strong market position, strategic investments in technology, and promising partnerships, DTC is well-prepared for continued success in the years ahead.

Feb. 20, 2025 1:13 p.m. 356

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