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The Board of Directors of Salik Company PJSC (“Salik” or the “Company”), Dubai’s exclusive toll gate operator, chaired by His Excellency Mattar Al Tayer, Chairman of the Board, today announced the Company’s financial results for the three-month and six-month periods ended June 30, 2024 (“Q2 2024” and “H1 2024”).
Salik delivered very healthy financial performance in the first half of 2024, registering 238.5 million revenue-generating trips which increased by 4.9% YoY to record a total revenue of AED 1.1 billion. Revenue from toll usage, comprising 87.1% of total revenue, rose by 4.9% YoY to AED 953.8 million. During the first half of 2024, Salik reported EBITDA of AED 738.4 million, up 6.5% year-on-year, and profit before tax of AED 598.6 million, up 9.2% year-on-year. Salik generated net profit after tax of AED 544.8 million during the same period. In view of the strong financial results, the Company’s Board of Directors approved an interim dividend distribution of AED 544.8 million, equivalent to 7.263 Fils per share, payable on 5 September 2024.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said: “We are very pleased with our performance during the first half of the year, with strong revenue growth of 5.6% year-on-year, further supporting our ambition to become a global leader in mobility solutions. Since the beginning of 2024, we have focused on expanding our core tolling business while diversifying our revenue streams through new strategic initiatives. The addition of two new toll gates in Dubai, scheduled to be operational by the end of November 2024, and our recent parking solutions partnership with Emaar Malls, which became operational in July this year, underscore our commitment to diversification and growth. These initiatives further support the company’s ability to continue creating value for all stakeholders while directly supporting Dubai's position as a leading destination to visit, live and work.”
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: “We are delighted to report another very robust quarter, with Salik’s performance a clear demonstration of the resilience of our business model and our commitment to enhancing mobility in Dubai. The increase in revenue-generating trips and active accounts achieved in Q2 2024 reflects our strategic efforts to meet growing demand for efficient transportation. Dubai continues to strengthen its position as a global tourism hub, attracting more international visitors than ever before. The city continues to attract new residents and businesses, and we are proud to play a pivotal role in making Dubai one of the most accessible cities in the world.”
Performance Highlights
Mobility Highlights
Salik posts 1.6% YoY growth in revenue-generating trips in Q2 2024, reaching 115.7 million
The total number of trips, including discounted trips, made through Salik’s eight toll gates grew by 1.2% YoY in the second quarter, driven by Dubai’s continued attraction to tourists and business-as-usual commercial activities. As a result, revenue-generating trips reached 115.7 million, up 1.6% YoY, the highest second quarter revenue-generating trips since inception. Growth remained strong across several gates in the second quarter, with Jebel Ali seeing double digit growth (+c.10%), and other gates growing in the high-single digit range, including Al Maktoum Bridge (+c.4%) and Al Safa (+c.3%).
Growth in active accounts exceeds 14.6% YoY, with registered vehicles increasing by 8.8% YoY to 4.2 million
Registered active accounts increased 14.6% YoY to c.2.5 million from c.2.2 million in Q2 2023, with tag activations reaching c.244,000 in the second quarter, a 6.3% YoY increase. In addition, the number of vehicles registered with Salik in the second quarter increased 8.8% YoY, reflecting the Government of Dubai’s continued success in expanding the economy and ensuring the Emirate remains a key destination for tourism and new residents.
Salik continued to offer tariff exemptions to vehicles used by charities, schools, people of determination, ambulances, and other public services. The number of free-of-charge trips made by exempted vehicles through Salik’s eight toll gates remained relatively stable YoY at c. 2.0 million. Growth was mainly driven by an increase in the number of registered exempted vehicles, which grew 8% YoY to reach 54,231 vehicles by the end of the quarter.
Financial Highlights
Continued strong performance drives revenue to AED 532.7 million in Q2 2024, up 3.1% YoY
- Toll usage fees: revenue continued to increase during the second quarter, supported by the inflow of tourists and increased movement of individuals across Dubai. As a result, toll usage fee revenues increased 1.6% YoY to AED 462.7 million.
- Fines: revenue from fines increased by 8.4% YoY to AED 57.2 million. The number of net violations (accepted minus dismissed violations) grew 8.5% YoY in Q2 2024, reaching c.672,000. Net violations during the second quarter represented 0.6% of net toll traffic, with revenue from fines contributing 10.7% to total revenue.
- Tag activation fees: grew strongly in the second quarter, with revenue increasing 53.0% YoY to AED 10.0 million. Tag activation fees contributed 1.9% of total revenues in the quarter.
Salik maintained strong profitability in the second quarter, with EBITDA up 4.5% YoY
Salik generated EBITDA of AED 361.5 million in the second quarter of 2024, up 4.5% YoY, from AED 345.9 million in the prior year. The EBITDA margin reached 67.8% in the second quarter, compared to a margin of 66.9% during the second quarter of 2023 and 67.1% in the first quarter of 2024.
In Q2 2024, Salik reported net profit before taxes of AED 293.9 million, marking a 7.8% increase year-on-year. Following the implementation of a new 9% corporate tax in the UAE in 2024, Salik generated net profit after taxes of AED 267.5 million for the period, a slight decline of 1.9% year-on-year. It is worth noting that the negative YoY impact of the corporate tax will only be realised in Salik’s 2024 financial results, and not in future periods.
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