Dubai Taxi Company has declared a total dividend payout of AED282 million ($77 million) for 2024, reflecting a strong financial performance and a nearly 50% increase in its share price since its listing on the Dubai Financial Market (DFM) in December 2023.
For 2024, the company’s revenue rose by 12% year-on-year, reaching AED2.2 billion. In line with its policy to distribute at least 85% of annual net profit, the taxi operator’s board has recommended a final dividend of AED122 million, bringing the total dividend for the year to AED282 million. The final dividend is expected to be distributed in April.
The company’s shares have seen a remarkable 48% increase since the initial public offering (IPO), closing at AED2.75 on Wednesday, compared to the listing price of AED1.85.
While Dubai Taxi’s net profit for 2024 declined by 4% to AED331 million, the company attributed the decrease to the introduction of corporate tax and higher interest costs. However, earnings excluding tax and interest costs grew by 18% year-on-year.
Revenue from the taxi segment also saw a 12% increase, reaching nearly AED2 billion. The company added 744 new vehicles to its fleet, bringing the total to 5,960, and its taxis and limousines completed over 49 million trips, a 6% increase from the previous year. CEO Mansoor Rahma Alfalasi credited the company’s strong performance to Dubai’s robust population growth and thriving tourism sector, which drove demand.
