Dubai Taxi Company Q2 net profit grows 33% YoY to Dh105.4 million

30/07/2025 02:01 AST

Dubai Taxi Company on Tuesday announced that Q2 2025 net profit increased by 33 per cent year-on-year to Dh105.4 million, representing a net profit margin of 17 per cent, supported by the strong rise in operating profit.

Revenue grew 18 per cent year-on-year to Dh625.2 million, driven by fleet expansion and higher number of trips. For H1 2025, revenue increased by 11 per cent year-on-year to Dh1.2 billion reflecting sustained momentum throughout the first half of the year.

DTC's taxi segment revenue in Q2 2025 increased by 18 per cent year-on-year to Dh539.7 million, driven by fleet expansion while maintaining strong utilisation levels. As of June 2025, the total operational taxi fleet reached 6,210 vehicles, including 335 fully electric vehicles as part of the Company's ongoing transition to a more sustainable offering.

DTC's Board of Directors has approved dividends of Dh160.7 million, amounting to 6.43 fils per share for H1 2025, in line with the Company's dividend policy of targeting dividend distribution of at least 85 per cent of annual net profit, distributed semi-annually. The announced interim dividend is expected to be distributed in August 2025.

The limousine segment saw revenue increase by 8 per cent year-on-year to 30.5 million in Q2 2025, supported by the expansion of its fleet. The Company's taxis and limousines segment completed 13.6 million trips during Q2 2025, up 19 per cent year-on-year. As of June 2025, DTC's total operational fleet across all segments increased by 23 per cent to 10,180.

DTC's bus segment revenue stood at Dh31.3 million for Q2 2025, a 12 per cent decrease year-on-year, due to contractual changes that altered the revenue recognition cycle during the period. These changes do not have any impact on the overall annual contract values

The company's delivery bike segment recorded strong revenue growth in Q2 2025, increasing by 102 per cent year-on-year to Dh18.2 million, supported by continued expansion in the fast-growing on-demand delivery market.

The company's Ebitda increased 30 per cent year-on-year to Dh180.6 million in Q2 2025 driven by a significant increase in trips and revenue, alongside a lower promotional impact from Connectech (DTC's subsidiary including Bolt e-hailing operations), which was more heavily weighted toward the first quarter as anticipated. The Ebitda margin in the second quarter was up 3 percentage points at 29 per cent, whilst remaining robust at 28 per cent for the first half, as DTC remained focused on driving operational efficiencies.

DTC maintains a healthy balance sheet, with a highly attractive net debt-to-Ebitda ratio of 1.2x and a cash balance of Dh236 million as of 30 June 2025, including Wakala deposits.

DTC's Chairman, Abdul Muhsen Ibrahim Kalbat, said: "Our results reflect the continued strength of our operating model and our ability to deliver value through consistent execution and customer-focused innovation. We are proud to operate in a market as dynamic and forward-looking as Dubai and the wider UAE, where strong population growth, record infrastructure investment, and robust economic indicators continue to support long-term demand for smart mobility solutions, and we are well-positioned to capitalise on these positive trends. I am also pleased to confirm that the Board approved a dividend payout for the first half of the year, in line with our highly attractive policy to distribute at least 85 per cent of annual net profit."

DTC's CEO, Mansoor Rahma Alfalasi, added: "Our performance in the second quarter and first half of 2025 underscores our disciplined execution and sustained operational progress. We continue to see strong momentum across our core segments, driven by expanding fleet capabilities and increasing demand for smart, customer-centric mobility solutions. A major highlight of the period has been the deepening of our strategic partnership with Bolt, marked by the onboarding of over 6,000 taxis to the Bolt platform. This milestone represents a significant step forward in our ambition to build the UAE's largest e-hailing ecosystem. It exemplifies our commitment to creating integrated, digital-first mobility solutions that elevate everyday convenience and reshape the customer experience. Additionally, our alliance with Al-Futtaim Electric Mobility reinforces our long-term commitment to sustainability as we advance towards a fully electric fleet by 2040."

Outlook
DTC remains confident in its outlook across all business segments, supported by strong fundamentals and macroeconomic momentum in Dubai and the wider UAE. Continued investment in infrastructure, a growing population, and robust tourism inflows are expected to sustain demand for smart, tech-enabled mobility solutions.

With the continuous fleet expansion, as well as the long-term strategic partnership with Dubai Airports, DTC is positioned to capture value from the emirate's robust growth while its investments in technology and partnerships will continue to unlock exciting new growth opportunities.

Khaleej Times