Dubai Taxi Company turns in 54% rise in 2023 net profit; Dh71m to be delivered as Q4 dividend
It will be spreading out Dh71m as Q4-23 dividend in april
Dubai: The Dubai Taxi Company closed 2023 with a 11 per cent increase in revenues, helped along by higher number of rides and growth in the size of its fleet to more than 7,300 vehicles. That helped drive net profit to Dh345.3 million, up 54 per cent.
DTC is coming off a strong IPO and subsequent listing on the DFM. Incidentally, it was the final listing on the Dubai stock exchange last year. And DFM will now be seeing its first one of 2024, courtesy Parkin, which too is part of the RTA network as are DTC and Salik.
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.
The DTC board has approved a Q4-2023 dividend of Dh71 million (at 2.84 fils a share), to be distributed in April 2024.
"During the year we continued to make strides with our strategic priorities, expanding our fleet and implementing smart technologies to drive efficiency across segments," said Mansoor Rahma Alfalasi, CEO of DTC. "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.”
All of 2023, DTC vehicles put in 46 million trips, an increase of 8 per cent year-on-year.
It's all positive
On 2024 chances, DTC foresees a healthy ride on growth, 'bolstered by Dubai’s strong economic outlook with a forecasted CAGR (compound annual growth rate) population growth of 2.8 per cent between 2023-40'. Add to that the tourism generated CAGR growth of 20.5 per cent between 2023-25.
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
"Additionally, the Dubai 2040 Urban Master Plan, which will see the development of new urban clusters, (which) is expected to drive increased demand for taxis and limousines," the forecast says. "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."
How the debt levels measure up
DTC had secured a Dh1 billion term loan in 2023 with a maturity of 5 years, as well as a revolving credit facility of Dh200 million, from which there were no drawdowns last year.
“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," said Alfalasi.