In 2023, DTC showcased robust performance, marked by its milestone listing on the Dubai Financial Market (“DFM”) in December. The fiscal year witnessed a noteworthy 11% year-over-year surge in revenue, reaching AED 1.95 billion. This growth was primarily propelled by the Taxi segment, demonstrating a substantial increase in trips, supported by Dubai’s thriving environment and DTC’s exclusive agreements in key city areas, including the bustling Dubai International Airport (“DXB”). As of the close of 2023, DTC boasted a fleet exceeding 7,400 vehicles, with its Taxis and Limousines collectively completing 46 million trips—a commendable 8% increase compared to the previous year.
The robust financial performance of DTC in FY 2023 translated into a remarkable 55% year-on-year surge in EBITDA, reaching AED 490.5 million. This reflected a substantial 7-percentage point increase in margin, now standing at 25%. The stellar financials were underpinned by DTC’s unwavering commitment to operational excellence achieved through strategic technology adoption.
DTC’s focus on leveraging technology manifested in initiatives such as the implementation of a state-of-the-art control center. This center played a pivotal role in optimizing fleet distribution, contributing significantly to the enhanced operational efficiency witnessed during the year. Additionally, the increased adoption of e-hailing services played a crucial role in refining the overall customer journey.
In terms of financial metrics, the net profit for FY 2023 witnessed an impressive year-on-year upswing of 54%, reaching AED 345.3 million. Simultaneously, the company demonstrated sound financial health, with a Free Cash Flow of AED 129 million.
Maintaining a robust balance sheet, DTC achieved a highly attractive net debt to EBITDA ratio of 1.3x during the fiscal year. Demonstrating financial prudence, the company secured a substantial AED 1.0 billion term loan with a 5-year maturity. Complementing this, DTC also established a revolving credit facility of AED 200 million, which remained untapped throughout FY 2023.
Highlighting DTC’s FY 2023 outcomes, DTC’s Chairman, H.E. Abdul Muhsen Ibrahim Kalbat, stated – “Our robust inaugural collection of outcomes complying with our successful IPO on DFM in December 2023, outlines the power of our business, which is underpinned by the evolutions of Dubai, our marketing leading status and a supportive administrative condition. DTC has a well-described satire and method that capitalizes on Dubai’s ambitious urban evolvement and strong tenant and tourism evolution, making sure that we are well-positioned to deliver long-term evolutions and value creation for our stakeholders. I’m also satisfied to ensure that DTC’s Board has suggested a dividend payout of AED 71 million for Q4 2023, in line with our IPO dedication and subject to stakeholder approval.”
DTC’s CEO, Mansoor Rahma Alfalasi, stated – “Complying with our successful IPO on the DFM, DTC provided with a good collection of outcomes with profits enhancing 11% year-on-year to AED 1.95 billion in 2023, forcing a 54% increase in total earning. Throughout the year we continued to make strides with our strategic priorities, extending our fleet and incorporating wise techniques to push effectiveness in segments. With a major tax market share in Dubai and a number of prospects to extend into neighboring emirates, DTC plays an instrumental part in connecting individuals and evolving the country’s top-class transportation infrastructure.”
“Looking forward we look to a supportive atmosphere for evolution driven by the position of Dubai as a leader tourist destination and the enhancement of the city’s urban sites.”
Board Sanctions Dividend for Q4 2023
The Board of Directors has granted approval for the inaugural dividend of AED 71 million, equating to 2.84 fils per share for Q4 2023. This distribution is contingent upon shareholder endorsement at the upcoming Annual General Meeting (“AGM”) and is anticipated to be disbursed in April 2024.
Operational Milestones in Fiscal Year 2023
DTC incorporated the utilization of artificial intelligence at its control center supervising its whole fleet of taxis, buses, limousines, and delivery bikes to confirm protection and effectiveness while redirecting services to sides that are sought-after.
Taxis – Inaugurated the secure hand’s service on the DTC app which makes parents capable of pre-booking taxis regularly, weekly, and on a monthly basis to transport their kids to and from school, giving secure and comfortable services for kids residing in places not serviced by school buses.
Limousines – Signed a contract with Dubai World Trade Centre to give 24/7 limousine services for its travelers and exhibitors, powering the standing of the company as the provider of major transportation services at the highly settled venues of Dubai.
Buses – Deployed high-tech features on its fleet of school buses to make sure student protection on all trips. These comprise surveillance cameras, a system to find student activity in transit, and an emergency alert technology for making instant contact with the emergency services.
Delivery Bikes – Inaugurated in September 2022, the corporation’s delivery segment has enhanced substantially to more than 752 bikes at the end of 2023. Throughout the year, DTC signed a new contract with NOON and Etisalat Smiles for last-mile delivery services, because it constantly to scale the delivery element.
Prospects for the Future
Dubai Taxi Corporation (DTC) stands poised for robust growth across all sectors, riding on the buoyant economic prospects of Dubai. The city’s anticipated population surge, with a projected Compound Annual Growth Rate (“CAGR”) of 2.8% from 2023 to 2040, coupled with a remarkable tourism CAGR of 20.5% forecasted between 2023 and 2025, forms a solid foundation for DTC’s optimistic outlook.
A significant catalyst for this positive trajectory is the Dubai 2040 Urban Master Plan. This visionary plan is set to unfold new urban clusters throughout Dubai, creating a landscape conducive to heightened demand for taxi and limousine services. DTC, recognizing this unprecedented growth opportunity, is strategically positioned to harness value by adhering to its well-defined strategy. This strategy includes a focus on fleet expansion and continuous enhancements in operational efficiency.
Furthermore, DTC’s strategic vision extends beyond the boundaries of Dubai. The company is well-prepared to capture emerging opportunities by expanding its footprint into neighboring emirates. Simultaneously, DTC is actively exploring prospects for market consolidation, aligning with its commitment to staying at the forefront of the rapidly evolving transportation landscape.
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