Salik Company PJSC, the sole toll gate operator in Dubai chaired by Mattar Al Tayer, has given the nod to the financial results covering the period until December 31, 2023. The company has disclosed robust financial performance, achieving a record-high revenue of AED 2,109M.
According to the filing on Monday, toll usage revenue, constituting 87.5 percent of the total revenue, experienced a year-on-year growth of 11.7 percent, reaching AED 1,845M.
In 2023, Salik recorded 461.4 million revenue-generating trips
“Salik has reported another strong year, with record top-line performance supported by continued strength in revenue generating trips. The achieved results for 2023 are a testament to our strategic vision and commitment to delivering long-term value to our shareholders, as well as to the positive macroeconomic environment in the UAE. GDP growth coupled with strong tourism inflow are evidence that the Government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit,” Mattar Al Tayer, Chairman of the Board of Directors said.
Regarding mobility achievements, Salik witnessed a surge of 11.7 percent in revenue-generating trips in 2023, hitting a new milestone of 461.4 million. The number of registered vehicles rose by 9 percent year-on-year to 4 million, and active accounts experienced a growth of over 15 percent.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, expressed, “Salik is making notable strides in achieving its long-term goals, aligning with our aspiration to be a global leader in mobility solutions.” He highlighted the success in the tolling business, emphasizing their commitment to fortifying the core business while expanding within Dubai. Al Haddad also mentioned the partnership with Emaar for barrier-free parking at Dubai Mall in the fourth quarter of 2023, with plans for similar initiatives in the coming year.
In financial terms, Salik registered an 11.4 percent year-on-year revenue increase, reaching AED 2,109M for the fiscal year 2023. The Earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached AED 1,390M with a margin of 65.9 percent. The net profit for the period stood at AED 1,098M. The Board of Directors recommended distributing 100 percent of the second half of 2023 net profit as dividends, totaling AED 550M.
Salik also outlined its corporate strategy, aiming to be a global leader in sustainable and smart mobility solutions over the next five years. This involves diversifying revenue streams and expanding the portfolio of mobility services, according to Arabian Business.
Looking forward, Salik anticipates a 4-6 percent year-on-year increase in revenue-generating trips for the full year 2024, with a robust EBITDA margin ranging from 65 to 66 percent. Established as a public joint stock company in June 2022, Salik operates as Dubai’s exclusive toll gate operator under a 49-year concession agreement with the Roads and Transport Authority (RTA).
