Salik Company PJSC Reports Strong Growth in 2024 with Strategic Milestones and Enhanced Financial Performance
The company reported a notable 8.7% year-on-year (YoY) increase in total revenue for FY 2024, reaching AED 2.3 billion. In the fourth quarter, revenue surged by 15.6% YoY to AED 651 million. This growth was driven by an increase in revenue-generating trips and the successful launch of two new toll gates.
Salik's EBITDA for the year reached AED 1.6 billion, reflecting a 13.6% YoY growth, with a strong EBITDA margin of 68.9%, up from 65.9% in FY 2023. This robust financial performance underscores the company's strategic position and its effective business model, which continues to deliver long-term value to shareholders.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed his satisfaction with the results, highlighting the company's commitment to expanding its business and enhancing its operational performance. 'Salik has had an exceptional year with record profitability. Our financial results for 2024 are a testament to the strength of our business model, and we look forward to achieving more strategic milestones in 2025,'
Al Tayer stated.
The company also saw an increase in revenue-generating trips, which rose by 8.0% YoY to reach 498.1 million trips. The launch of two new toll gates, Business Bay and Al Safa South, in November 2024, played a significant role in this growth. Additionally, toll usage fees grew by 8.0% YoY, reaching AED 1.99 billion, with the fourth-quarter revenue for toll fees increasing by 15.7% YoY.
Ibrahim Sultan Al Haddad, CEO of Salik, highlighted the company's success in exceeding its guidance, particularly in the fourth quarter, where revenue-generating trips and overall profitability saw significant growth. "We are optimistic about the positive trends in Dubai's economy, which align with and support our growth vision. We have revised our FY25 revenue growth guidance to 28-29%, driven by the new gates and the introduction of variable pricing,"
Al Haddad added.
In addition to its core tolling business, Salik made significant strides in expanding its ancillary revenue streams. The company's partnership with Emaar Malls to provide a seamless, barrier-free parking payment solution contributed AED 5.8 million in FY 2024. This collaboration is part of Salik's broader strategy to enhance customer experience through innovative solutions. Furthermore, the company's partnership with Parkonic to integrate Salik's e-wallet system across 107 parking locations in the UAE is expected to further diversify revenue sources.
Salik also made headway in its commitment to smart and sustainable mobility solutions. The introduction of variable pricing on January 31, 2025, aims to improve traffic flow across Dubai's roads while generating additional revenue of AED 60-110 million annually. The company's recent collaboration with Liva Group to streamline the vehicle insurance renewal process exemplifies Salik's dedication to offering value-added services to its customers.
Despite facing challenges such as the introduction of a 9% corporate tax in 2024, Salik's net profit after tax for FY 2024 reached AED 1.16 billion, a 6.1% YoY increase. The company also proposed a dividend payout of AED 619.8 million for H1 2025, reflecting a strong balance sheet and commitment to shareholder returns.
As Salik looks to 2025, the company remains confident in its growth prospects, bolstered by strategic investments and partnerships. Its continued focus on expanding its service offerings, enhancing operational efficiency, and promoting sustainability positions Salik to be a key player in the future of smart and sustainable mobility solutions. Financial Highlights: Total Revenue for FY 2024: AED 2.3 billion (up 8.7% YoY)
Fourth-quarter revenue: AED 651 million (up 15.6% YoY)
EBITDA for FY 2024: AED 1.6 billion (up 13.6% YoY)
Net profit after tax for FY 2024: AED 1.16 billion (up 6.1% YoY)
Dividend payout: AED 619.8 million for H1 2025
As Salik continues to grow, its commitment to innovation, sustainability, and customer experience positions it for another successful year in 2025.
News Source: Dubai Media Office
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