Wednesday 17 April 2024

Salik delivers solid result for 2023; revenue soars to $560m

DUBAI, March 4, 2024

Dubai’s exclusive toll gate operator Salik has announced that it had delivered strong top-line performance in FY 2023, with 461.4 million revenue-generating trips and recording a total revenue of AED2.1 billion ($560 million), mainly supported by the strong growth in tourism and residency. 
Announcing the results for the 12-month period ended December 31, 2023, Salik said: "Toll usage revenue, which represents 87.5% of total revenue, increased 11.7% YoY to AED1.84 billion, the strongest full year performance since Salik commenced operations in 2007, supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination both for visitors and individuals relocating to the city.
The total number of trips, including discounted trips, made through Salik’s eight toll gates grew by 10% over the course of the year. The ebitda was down compared to the AED 1,440 million reported in 2022. Net profit too fell 17.2% to AED1.09 billion.
Driven by Dubai’s continued attraction to tourists and business-as-usual commercial activities, the total number of trips grew 8.5% YoY in the fourth quarter. 
As a result, revenue-generating trips in 2023 reached new highs of 461.4 million, up 11.7% YoY and comfortably above the pre-pandemic peak of 434.7 million recorded in 2019. 
On its Q4 results, Salik said this quarter alone saw revenue-generating trips of 123.2 million, up 11.1% YoY, also higher than the previous quarterly record of 113.8 million recorded in the second quarter of 2023. The toll usage revenue hit AED493 million.
It had generated an ebitda of AED366 million for the three-month period, up 5% YoY, from AED 349 million in the prior year with ebitda margin of 65% in the fourth quarter on a full year 2023 basis. 
The Al Maktoum Bridge gate saw the number of revenue-generating trips – excluding paid taxi trips – increase 53.6% YoY, due to the ongoing closure of the nearby Floating Bridge and diversion of traffic through the gate. 
Al Garhoud Bridge, similarly, saw the number of revenue-generating trips, excluding taxi trips, increase 12.2% YoY. 
Excluding both Al Maktoum and Al Garhoud Bridges, Salik’s revenue-generating trips increased 7.9% YoY in the fourth quarter and 9.3% for the year as compared to 2022. 
Several gates saw YoY growth exceed 10% in the fourth quarter, including Jebel Ali (+c. 16%) and Airport Tunnel (+c. 13%) with other gates growing in the high-single digit range, including Al Mamzar North (+c. 9%); Al Barsha (+c. 7%); Al Safa (+c. 7%).
Commenting on the results, Mattar Al Tayer, Chairman of the Board of Directors of Salik, said the company 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," he stated.
According to him, Salik's updated corporate strategy will see the diversification of its revenue streams to supplement the expansion of the core tolling business.
"We look forward to updating the market on our strategic progress in due course. In view of the strong performance in 2023, the Board is pleased to recommend a dividend of AED 550 million for the second half of the year," he noted.
CEO Ibrahim Sultan Al Haddad said: "Salik is continuing to make good progress on delivering its long-term objectives, in line with our ambition to become a global leader in mobility solutions. We are thriving in the tolling business and remain focused on strengthening our core business offering as we expand our footprint within Dubai."
"At the same time, we are committed to delivering sustainable growth, with our updated strategy purpose-built to widen the revenue generating opportunities that we pursue. In the fourth quarter of 2023, we were delighted to announce our partnership with Emaar to provide technology solutions for barrier-free parking at the world-famous Dubai Mall, and we look forward to pursuing similar initiatives in the year ahead," he added.


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