UAE: SALIK records 562 AED million in revenue in Q1 2024

Omar Abbas - | Business

With 122.8 million revenue-generating journeys in the first quarter of 2024, an 8.1% increase over the same period the previous year, SALIK saw impressive revenue growth.

The quarter's total revenue was 562 million dirhams, an 8.1% rise over the previous year. The number of trips and the traffic toll system fees increased, which was the main cause of this revenue spike.

Chairman Mattar Al Tayer emphasized the company's dedication to providing shareholders with long-term value while highlighting the accomplishments of SALIK's strategic goal. He credited the successful outcomes to the United Arab Emirates' strong economic climate, which is being driven by policies meant to diversify the country's economy and increase Dubai's allure for travelers and investors.

CEO Ibrahim Sultan Al-Haddad expressed satisfaction with the strong performance in Q1 2024 and reiterated SALIK's ambition to become a global leader in mobility solutions. He emphasized the company's focus on diversifying revenue sources while maintaining excellence in its core toll collection business.

Mobility Trends and Financial Performance

The first quarter saw a significant increase in revenue-generating trips, driven by continued commercial and tourism activities in Dubai. Notably, the Al Maktoum Bridge Gate experienced a substantial surge in trips due to temporary closures elsewhere. Overall, revenue-generating trips reached their highest level since the company's inception.

Active customer accounts and registered vehicles also experienced growth, reflecting Dubai's ongoing economic development and its status as a key tourist and commercial destination. SALIK continued to provide tariff exemptions for certain vehicles, contributing to increased free trips through the toll gates.

Growth in revenues from penalties and traffic toll system charges contributed to the overall revenue expansion. SALIK remained financially viable, witnessing an 8.4% year-on-year increase in net profit before accounting for financing costs, taxes, depreciation, and amortization. The company maintained a healthy financial position, with its net debt-to-EBITDA ratio remaining within the desired range.

With an emphasis on personnel development and emiratization rates, SALIK underlined its dedication to advancing diversity and inclusion. The company's goal is to achieve its business goals while continuing to have a positive social impact. SALIK is assiduously pursuing its revised plan of action to become the world leader in mobility solutions. The corporation has shown its dedication to innovation and diversification by establishing partnerships for barrier-free parking and installing two additional toll gates in Dubai.

Future Outlook and Business Aspirations

In the long run, SALIK hopes to sustain a profit margin of 65–66% before financing costs, taxes, depreciation, and amortization. It also expects a natural increase in revenue-generating trips. As it assesses the effects of additional toll gates and other circumstances, the business will issue updated financial guidance.

A recent reduction in annual concession fees is expected to positively impact SALIK's financial performance from the second quarter of 2024 onwards. The company remains optimistic about its future prospects and is poised to capitalize on opportunities for growth and innovation in the mobility sector.

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Omar Abbas
Omar Abbas
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