Dubai Taxi Company Reports Strong Q1 Growth
Dubai Taxi Company PJSC reveals impressive Q1 2025 financial results, driven by strategic expansions and sustainability efforts.
Summary
Dubai Taxi Company PJSC has announced a robust performance in Q1 2025, with significant revenue growth and strategic partnerships enhancing its market position.
Dubai Taxi Company PJSC (DTC), a key player in Dubai's mobility solutions sector, has reported a strong performance for the first quarter of 2025. The company achieved a revenue of AED 588.3 million, marking a 5% year-on-year increase, and a 7% rise on a like-for-like basis. This growth is primarily attributed to an 8% increase in trip numbers across its taxi and limousine segments.
One of the most notable achievements for DTC this quarter is the addition of 250 fully electric taxis, expanding its operational fleet to over 6,200 vehicles. With more than 86% of its fleet now hybrid or electric, DTC is making significant strides towards sustainability, aligning with Dubai's 2040 Urban Master Plan.
The company's strategic partnerships have also played a crucial role in its Q1 success. A five-year exclusive partnership with Dubai Airports positions DTC to capitalize on the rising influx of tourists and visitors. Additionally, the completion of the first full quarter of operations with Bolt has demonstrated strong demand, despite additional costs from planned promotional activities.
Despite these positive developments, DTC reported a 9% decline in EBITDA to AED 154 million, though it showed a 4% increase on a like-for-like basis. Net profit also saw a decline of 23% overall, with a modest 2% decrease on a like-for-like basis. These figures suggest the company is facing some short-term financial challenges, likely due to increased operational costs associated with its expansion and promotional activities.
Looking ahead, DTC's strong market position, coupled with its commitment to sustainability and strategic partnerships, paints an optimistic future for the company. The shareholders' approval of a final dividend of AED 122.3 million for the second half of 2024, distributed in April 2025, reflects confidence in the company's long-term growth trajectory.
Given the company's robust fundamentals and strategic initiatives, investors may consider holding their positions in DTC. The company's focus on sustainability and strategic partnerships are likely to drive further growth and profitability in the future.
Source
Summary
Dubai Taxi Company PJSC (DTC) reported AED 588.3 million in revenue for Q1 2025, marking a 5% year-on-year increase and a 7% rise on a like-for-like basis. The growth was driven by an 8% increase in trips, with 13 million trips completed in the taxi and limousine segments. DTC expanded its fleet by adding 250 fully electric taxis, totaling over 6,200 vehicles, with more than 86% of them being hybrid or electric. The company formed a strategic five-year partnership with Dubai Airports to cater to the growing number of tourists and visitors. The partnership with Bolt completed its first full quarter, experiencing strong demand despite additional promotional costs. EBITDA decreased by 9% to AED 154 million but showed a 4% increase on a like-for-like basis. Net profit was AED 84 million, down 23% overall, with a 2% decline like-for-like. Shareholders approved a final dividend of AED 122.3 million for the latter half of 2024, distributed in April 2025. DTC's results reflect strong business fundamentals, supported by Dubai's population and tourism growth.
