Dubai: Dubai Taxi Company is banking on a recovery in travel demand, tighter operating controls and savings from its National Taxi acquisition to protect profitability as Dubai heads into its traditionally busy December travel season.
But higher fuel costs, acquisition-related borrowing and weaker underlying margins remain challenges for the transport operator.
The company's third-quarter results show a business recovering from a difficult period, with an improvement in revenue.
Dubai Taxi Company (DTC) reported third-quarter revenue of Dh735.5 million, up 25.7 per cent year on year, following the consolidation of National Taxi, which it acquired in July. However, net profit fell 25.3 per cent to Dh57.1 million, while EBITDA margin narrowed to 22.6 per cent from 25.9 per cent a year earlier.
The contrast highlights the challenge facing the company: expanding its fleet and market share while managing the additional costs of operating a larger business.
"We don't see any kind of concern. Although the conflict is still not over, the good news is that a clear recovery and operating momentum are really visible to us," Mansoor Rahma Alfalasi, Group Chief Executive Officer of Dubai Taxi Company (DTC), told Gulf News.
The CEO said the company was now focused on translating the recovery in passenger activity into stronger cash generation, while integrating National Taxi and managing the additional costs of a…
