logo
Salik reports AED 751.6mln in revenue for Q1 2025, up 33.7% YoY

Salik reports AED 751.6mln in revenue for Q1 2025, up 33.7% YoY

Zawya13-05-2025

Total chargeable trips reached 158.0 million as the company implements Variable Pricing
Net Profit for the period increased 33.7% YoY to AED 370.6 million
Salik Company PJSC ('Salik' or the 'Company'), Dubai's exclusive toll gate operator, today announced its financial results for the three-month period ended March 31, 2025 ('Q1 2025'). Total revenue for the first quarter of 2025 grew by 33.7% YoY to reach AED 751.6 million. EBITDA for the first quarter increased 37.9% YoY to AED 519.6 million. In Salik's core tolling business, total chargeable trips reached 158.0 million following the introduction of variable pricing at the end of January 2025 and the launch of the two new toll gates in November 2024.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said:
'Our exceptional Q1 performance reflects a continued focus on delivering long-term value to shareholders and our ambition to become a global leader in providing smart and sustainable mobility solutions. Dubai's robust economic growth – driven by the visionary leadership of the emirate, has played a key role in fueling our positive momentum and creating a strong foundation for long-term sustainable growth. We are pleased to build on the growth momentum we achieved in 2024, with robust top and bottom-line performance across both the core tolling business and our growing ancillary revenue streams, which continue to gain traction. We expect total revenue to grow 28-29% by the end of 2024 driven by the launch of operations in geographies outside of Dubai and the exploration of new partnerships to further enhance user experience and support both short and long-term earnings growth.'
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented:
'We've entered 2025 with strong momentum, with our core tolling business continuing to thrive, bolstered by the opening of two new toll gates in late 2024. We have also maintained progress in our ancillary revenue streams, with both the Dubai Mall and Parkonic parking partnerships seeing good traction with users in the first quarter. Total chargeable trips, accounting for the new variable pricing, reached 158 million, with total revenue growth exceeding 30%. Profitability is also robust, with EBITDA growth of more than 35%, delivering an industry leading EBITDA margin of 69.1%. A healthy first quarter positions us well for the year ahead and we are pleased to reiterate our full year guidance, with total revenue expected to grow 28-29%, and an EBITDA margin of 68-69% as we continue to strengthen our non-core offering while tapping new opportunities.'
Continued strong performance drives revenue to AED 751.6 million in Q1 2025, up 33.7% year-on-year
The total number of trips, including discounted trips, made through Salik 's toll gates grew 35.1% YoY in Q1 2025, driven mainly by the introduction of two new toll gates which became operational in November 2024. The strong growth was further supported by Dubai's continued attraction of tourists and residents, growth in commercial activities, the implementation of structural reforms and strategic, targeted investment to drive economic diversification.
Total chargeable trips reached 158.0 million in Q1 2025, supported by the introduction of variable pricing at the end of January 2025 and the launch of the two new gates in November 2024. Within this, chargeable trips during the peak period (AED 6) totaled 39.3 million, with trips in the off-peak period (AED 4) reaching 107.5 million. The growth in Total trips during the period is due to the use of Salik roads during the past midnight period (AED 0) which totaled 11.2 million in Q1 2025.
Toll usage fees: revenue performance was strong during the first quarter, increasing 35.5% YoY to AED 665.6 million. This was primarily due to the introduction of variable pricing at the end of January 2025, the introduction of the two new gates and Dubai's high levels of tourism in the first three months of the year.
Fines: revenue from fines increased 16.2% YoY to AED 68.4 million in the first quarter. The number of net violations (accepted minus dismissed violations) grew 15.0% YoY in Q1 2025, reaching c.786,000, representing 0.4% of net toll traffic, with revenue from fines contributing 9.1% to total revenue in Q1 2025.
Tag activation fees: grew strongly in the first quarter, with revenue increasing 17.4% YoY to AED 11.5 million. Tag activation fees contributed 1.5% of total revenue in Q1 2025.
Ancillary Revenue Streams
Total revenue from Salik's parking partnerships with Emaar Malls and Parkonic reached AED 2.8 million in Q1 2025. The strong performance was mainly driven by a continued high number of transactions at Dubai Mall in the Q1 period. The barrier-free parking payment solution at Dubai Mall processed 100% seamless transactions, in line with Salik's ambitions to deliver a seamless paid parking solution to enhance guest experience, improve parking availability and streamline the payment process. Salik has also seen good traction in its partnership with Parkonic since the launch of the partnership in mid-February, with a gradual roll-out plan in place, where Salik expects to expand across all Parkonic locations during Q2 2025.
Salik's partnership with Liva Group to provide a streamlined vehicle insurance renewal process has gained good traction with consumers, delivering AED 0.5 million of revenue in Q1 2025.
Salik reaffirms its confidence in expanding its ancillary revenue streams over the medium-long-term. This follows the good progress made in 2024, including the successful collaboration with Emaar Malls, its partnership with Parkonic to integrate Salik's e-wallet system across 107 locations in the UAE and its collaboration with Liva Group to streamline the vehicle insurance renewal process. These partnerships reflect Salik's commitment to delivering innovative solutions that enhance user experience and enable Salik to grow and diversify its revenue streams, contributing to the long-term sustainability of the business.
Financial Performance
Strong profitability in Q1 2025, with EBITDA increasing 37.9% year-on-year, and a robust balance sheet position
Salik generated EBITDA of AED 519.6 million in Q1 2025, up 37.9% YoY from AED 376.9 million in Q1 2024, its strongest quarterly EBITDA performance since the Company's inception.
EBITDA margin reached 69.1% in Q1 2025, compared to 67.1% in Q1 2024, representing a 210 bps expansion YoY, supported by strong revenue growth in the period. The EBITDA margin also improved in comparison to 68.9% in FY24.
Salik's net profit before taxes totaled AED 407.2 million in Q1 2025, marking a strong 33.6% YoY increase, despite higher finance costs in the period. Net profit before tax increased 8.2% compared to Q4 2024.
Salik generated net profit after taxes of AED 370.6 million in Q1 2025, a 33.7% YoY increase. Net profit after taxes increased 8.2% compared to Q4 2024.
Summary of balance sheet: net debt of AED 4,648.8 million, with leverage of 2.7x Net Debt to EBITDA
Salik recorded a net working capital balance of AED -681.2 million as of March 31, 2025, equating to -22.7% as a percentage of annualized revenues, in line with FY 2024 performance. The growth in net working capital compared to prior quarters is mainly due to the RTA concession fees associated with the toll rights fee for the new toll gates, in addition to higher provisions for the corporate tax introduced in January 2024. As at March 31, 2025, net debt stood at AED 4,648.8 million, a 10.6% decrease from AED 5,198.6 million at the end of 2024, which was slightly higher due to a payable relating to the concessionary rights due to RTA for the two new toll gates. This translates to a trailing twelve-month net debt/EBITDA ratio of 2.7x in Q1 2025, significantly below the Company's debt covenant of 5.0x.
Summary of cash flow: free cash flow of AED 626.7 million, with a margin of 83.4% - a significant YoY improvement
Salik generated free cash flow of AED 626.7 million in Q1 2025, up 77.8% YoY, with a free cash flow margin of 83.4%, a significant improvement from 62.7% in Q1 2024. Compared to Q4 2024, free cash flow improved 55.7%, with the free cash flow margin improving from 61.8% in Q4 2024.
Becoming a global leader in smart and sustainable mobility solutions
Core Tolling Business
Implementation of variable pricing: As instructed by the RTA, based on the traffic studies and analysis, Salik introduced variable pricing on January 31, 2025. The variable pricing aims to enhance traffic flow across Dubai's road networks and improve transportation efficiency across the city.
Valuation of two new gates: Salik continues to make progress on its updated strategy, having introduced two new toll gates in Dubai. The Business Bay and Al Safa South gates have been in operation since November 24, 2024. This follows the combined valuation of the two new toll gates at a total of AED 2.734 billion, with the Business Bay Gate valued at AED 2.265 billion and the Al Safa South Gate valued at AED 469 million to be paid in equal instalments, every six months over a six-year period.
Ancillary Revenue Streams – recap on key partnerships and initiatives
Salik commenced seamless parking operations at Dubai Mall: this milestone marked Salik's first barrier-free parking payment solution, in partnership with Emaar Malls, across the Fashion, Grand and Cinema parking zones of Dubai Mall, where operations commenced on July 1, 2024.
Salik collaborated with Parkonic, one of the largest private parking operators in the UAE: the collaboration aims to enhance parking payment experiences across the UAE by integrating Salik's advanced e-Wallet system. The partnership is based on a five-year contract, during which Parkonic will integrate Salik's e-Wallet into the 107+ locations it operates and any future locations it may operate in the UAE. The agreement also marks the first time Salik has expanded its service offering outside of the Emirate of Dubai.
New LIVA motor insurance partnership: Salik partnered with LIVA (formerly RSA), a leading multi-line insurer in the GCC, to offer its customers access to market-leading insurance solutions. The partnership offers one-of-a-kind bespoke insurance solutions to drivers in the UAE, streamlining the renewal process for greater convenience and efficiency. Salik leverages its comprehensive database to provide value-added services to customers by sending timely renewal reminders to mitigate insurance coverage lapses. These notifications include a link directing customers to a LIVA landing page, where the motor insurance policy can be renewed in a few simple steps at a competitive price.
Customized Salik tags initiative: Salik is in the process of launching an innovative Customized Tags initiative, allowing corporate customers to personalize Salik tags with unique designs and messages. This initiative reflects Salik's commitment to enhancing customer experience and embracing innovation.
Other Achievements
Signed Memorandum of Understanding (MoU) with ENOC to introduce smart payment solutions that enhance the customer experience at ENOC petrol stations: Under the agreement, Salik and ENOC customers will enjoy a seamless experience when paying for fuel and other services including Autopro, Tasjeel and Zoom, with the option for deducting the transaction value from the customer's balance in their Salik e-wallet. This is enabled through use of cameras with technology for Automatic Number Plate Recognition (ANPR), and is the same proven technology now employed at parking locations including Dubai Mall and those operated by Parkonic.
Continued investment in human resources: in Q1 2025 Salik expanded its full-time workforce by 29% YoY to 54 personnel, representing 13% growth as compared to year-end of 2024, with the number of nationalities represented at 12. Salik continues to progress on Emiratization, attaining a level of 29.6% in Q1 2025, with the female-to-workforce ratio at 20.4% at the end of the first quarter.
Business Outlook
FY25 total revenue guidance remains unchanged, expected to grow 28-29% YoY, including the contribution of two new toll gates
Revenue growth: total revenue growth in FY25 is expected to be in the range of 28-29% year-on-year, including the impact of the two new gates introduced in November 2024 and the implementation of variable pricing on 31 January 2025. On a normalized basis, excluding the contribution from the two new gates, Salik expects total revenue to increase 4-5% YoY in FY25.
EBITDA margin: is expected to be in the range of 68-69%.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oman hotel revenue hits $284m as visitor numbers up 8.6%
Oman hotel revenue hits $284m as visitor numbers up 8.6%

Arabian Business

time16 minutes ago

  • Arabian Business

Oman hotel revenue hits $284m as visitor numbers up 8.6%

Oman's revenue from three to five-star hotels by the end of April 2025, reached OR109,213,000 ($283.7m), according to statistics released by the National Centre for Statistics and Information (NCSI). This is an increase of 17.3 per cent compared to OR93,094,000 ($242m) during the same period in 2024. The statistics indicate that this growth is attributed to an 8.6 per cent rise in the total number of hotel guests, recording 831,751 guests by the end of April 2025, compared to 766,153 guests in the corresponding period in 2024. Oman tourism growth Additionally, the occupancy rate increased from 53.4 per cent by the end of April 2024 compared to 61.1 per cent by end of April 2025, marking a 14.4 per cent growth. The number of guests from Oceania surged by 57.8 per cent, totalling 18,124 visitors, followed by Africa with a 57.6 per cent increase, reaching 5,993 guests. European guests rose by 19.9 per cent, totalling 314,535 visitors. Meanwhile, guests from the Americas increased by 19.1 per cent, reaching 28,843 visitors, while GCC nationals saw a 12.6 per cent increase, totalling 53,642 guests. Asian nationalities recorded a 5.4 per cent rise, with 114,426 visitors. Conversely, the statistics revealed a 0.7 per cent decline in Omani guests, totalling 238,895 visitors by the end of April 2025.

Mohammed bin Rashid honours winners of fourth Mohammed Bin Rashid Al Maktoum Global Water Award
Mohammed bin Rashid honours winners of fourth Mohammed Bin Rashid Al Maktoum Global Water Award

The National

time25 minutes ago

  • The National

Mohammed bin Rashid honours winners of fourth Mohammed Bin Rashid Al Maktoum Global Water Award

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, honoured the winners of the fourth Mohammed Bin Rashid Al Maktoum Global Water Award. The ceremony, at Emirates Towers in Dubai, was attended by Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai. Overseen by the UAE Water Aid Foundation (Suqia UAE), the award is organised under the umbrella of Mohammed Bin Rashid Al Maktoum Global Initiatives. In the fourth event, 12 winners from eight countries were recognised, with total prize of $1 million. The award features four main categories: Innovative Projects, Innovative Research and Development, Innovative Individual, and Innovative Crisis Solutions. On this occasion, Sheikh Mohammed said the UAE remains committed to expanding its humanitarian impact and leveraging innovation to improve the quality of life for millions of people around the world. He said: 'Humanity today faces numerous challenges, and the scarcity of clean water is among the most pressing. We are committed to driving innovation to deliver sustainable solutions that advance the UAE's vision of harnessing technology to serve humanity and extend support to communities suffering from water scarcity. 'We take pride in the contributions of our institutions in this vital field, and we will continue to support every project, idea or innovation that makes a real difference in people's lives. Our message is humanitarian, our tools are knowledge and innovation, and our goal is to ensure the UAE's support reaches those who need it most, wherever they are.' In his speech during the honouring ceremony, Saeed Al Tayer, chairman of the board of trustees of Suqia UAE, expressed his gratitude to Sheikh Mohammed for honouring the winners of the fourth awards and for his continued support for humanitarian and development efforts. Mr Al Tayer affirmed the award reflects Sheikh Mohammed's vision of fostering practical, forward-thinking solutions that address critical global needs. He said that it also highlights the UAE's and Dubai's unwavering commitment to contributing to global efforts to combat water scarcity, one of the most pressing challenges facing communities worldwide. According to UN reports, 2.2 billion people worldwide lack access to safe drinking water. Unicef also highlights that more than 1,000 children under the age of five die each day from diseases linked to inadequate water, sanitation, and hygiene. Many communities around the world continue to face severe shortages of clean water. 'As Suqia UAE marks its 10th anniversary, it has successfully implemented over 1,000 sustainable water projects in collaboration with Emirates Red Crescent and other partners, positively impacting the lives of around 15 million people across 37 countries," said Mr Al Tayer. "These efforts have demonstrated that innovative solutions are key to addressing the global water crisis. The Mohammed Bin Rashid Al Maktoum Global Water Award - named after an inspirational leader and beacon of hope - serves as a global platform that reinforces the UAE's pioneering role in humanitarian work, grounded in the noble values instilled by the late Sheikh Zayed bin Sultan Al Nahyan. "This legacy continues under the leadership of Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, who said that 'The UAE remains dedicated to supporting hope and inspiring initiatives, serving as a champion of optimism in the Arab world',' said Al Tayer. "Guided by the vision and directives of Sheikh Mohammed, the Mohammed Bin Rashid Al Maktoum Global Water Award has become a focal point for companies, research centres, institutions, and innovators around the world, given its significant humanitarian and developmental impact. The award encourages individuals and research institutions to develop innovative, sustainable solutions for the production, desalination, and purification of water using clean energy sources. "In its first three awards, a total of 31 winners from 22 countries were recognised. The fourth event attracted applications from 46 countries. Today, Sheikh Mohammed honoured 12 winners from eight countries for presenting pioneering innovations that help address the challenge of water scarcity and provide safe drinking water to the most vulnerable communities,' said Al Tayer. Fourth event winners Innovative Projects Award – Large Projects: Green Waste Solutions Trading DMCC from the UAE secured first place for its LANDCO Tech project, which converts organic waste and wastewater into renewable energy, clean drinking water, and bio-fertilisers. The system employs COMBO containers and LANDCO modules powered by solar energy and biogas, integrating AI and blockchain technologies. It has a treatment capacity of 100m³ per day. Second place was awarded to the Sustainability Investment Promotion and Development Joint Stock Company (SIPCO) from Vietnam for its initiative to provide safe drinking water to vulnerable schools and communities. The project uses ceramic impregnated nano-silver pot filters (CSPF) to effectively remove bacteria, viruses, and sediments, benefiting millions globally in a cost-efficient manner. Third place went to Sotrad Water Srl from Belgium for its Pump&Drink® - Hydro1000 solution, a solar-powered system that pumps, treats, stores, and distributes drinking water sustainably. The system is already operational and serves over 200,000 people. Innovative Projects Award – Small Projects: Kumulus SAS from France took first place for its 'Kumulus Water – Drinking Water From Air' project. The solar-powered device uses a patented hybrid system to produce around 30 litres of drinking water per day and can be scaled to meet local demand, particularly in schools and rural communities. Jiangsu Fenghai New Energy Seawater Desalination Development Co Ltd, in partnership with Hangzhou Sunup Environmental Technology Co Ltd from China, received second place for their Intelligent Microgrid Seawater Treatment project. Using reverse osmosis and powered by solar or wind energy, the system produces up to 100 tonnes of water daily and supports the residents of ZS Island in China. Third place was awarded to FountAir LTD from Hong Kong for its AIR4WATER project—described as 'The Invisible Solution'. This split VAC-WG system, powered by renewable energy, can provide up to 150 litres of water daily and is being implemented in several countries. Innovative Research and Development Award – International Institutions: First place went to STEM SAS from France for its AQUAHIVE system, an energy-efficient and high-performance membrane distillation technology that uses solar, geothermal, or waste heat energy. The AI-optimised, patented heat exchange process significantly reduces carbon footprint and has a treatment capacity of 0.3 cubic metres per hour. The Energy and Water Company (ENOWA) – Neom from Saudi Arabia received second place for its innovative project that enables the extraction of valuable minerals—such as salt, lithium, and bromine—while recovering desalinated water from seawater or brackish brine. The solar-powered pilot facility, located at the Duba Desalination Plant, operates at 1,200m³ per day and reduces energy consumption compared to traditional methods. Innovative Research and Development Award – National Institutions: Khalifa University from the UAE earned first place for its Biomimetic Freshwater Generator for Solar Desalination without Brine Discharge. The system replicates the natural evaporation process of mangrove trees to generate freshwater from seawater while collecting salt as a byproduct, eliminating brine discharge. Using 10 units, the system can produce over five litres of water per day. Innovative Crisis Solutions Award: First place was awarded to SkyJuice Foundation Inc from Australia for its SkyHydrant Emergency Safe Water Solution. This lightweight, portable ultrafiltration system produces more than 5,000 litres of potable water daily and has been deployed in 74 countries to support communities facing crises and natural disasters. Innovative Individual Award – Distinguished Research Award: Professor Guihua Yu from the US received first place for his breakthrough technologies in solar-powered water purification and atmospheric water harvesting. His contributions include solar desalination using energy hydrogels, a solar-powered atmospheric water harvester, and biodegradable nanocellulose-based hydrogel filters. He holds more than 20 patents and leads a research centre at the University of Texas focused on sustainability and water innovation. Innovative Individual Award – Youth Award: Zhenyuan Xu from China was awarded first place for his Passive Solar Distillation system, which delivers ultra-high efficiency and extreme salt resistance. The system can produce more than 1.5 gallons of fresh water an hour per square metre of solar collection area. Affordable and field-tested, it supports sustainable development goals through education and community engagement.

How $35bn Al Maktoum International Airport expansion is driving major Dubai South real estate investment boom as property prices tipped to grow 20%
How $35bn Al Maktoum International Airport expansion is driving major Dubai South real estate investment boom as property prices tipped to grow 20%

Arabian Business

timean hour ago

  • Arabian Business

How $35bn Al Maktoum International Airport expansion is driving major Dubai South real estate investment boom as property prices tipped to grow 20%

The AED128bn ($35bn) expansion of Al Maktoum International Airport in Dubai South is fuelling a real estate boom that has major implications for the wider UAE economy, according to Betterhomes analysis. Property transactions in the area exceeded AED15bn ($4.1bn) in the first five months of 2025 and prices could increase by up to 20 per cent in the near term said analysts. Spanning 70 sq km, the new Al Maktoum Airport will feature five runways and 400 aircraft gates and is expected to accommodate more than 260m passengers annually upon completion. Al Maktoum International Airport drives Dubai South real estate growth More than just an enhancement to the aviation sector, however, the project is poised to drive growth across real estate, hospitality, and the broader economy. Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development, said Betterhomes. Louis Harding, CEO of Betterhomes, said: 'The development of Al Maktoum Airport is not just a milestone in aviation, but a catalyst for the next chapter of Dubai's real estate growth. We're already seeing the ripple effects in Dubai South. This is the early stage of a long-term growth cycle.' Rental rates have risen 20 per cent year-to-date, with a sharp increase in both off-plan and ready property sales. Betterhomes has also recorded more than 20 per cent monthly growth in buyer and tenant inquiries, while institutional capital is entering the market, most notably a $1bn investment partnership between a major Abu Dhabi-based asset manager and Brookfield. Property prices in Dubai South are forecast to rise by 15–20 per cent in the near term. Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent AED1bn ($272m) contract award for the airport's second runway signals continued momentum. Average prices in surrounding areas remain up to 60 per cent lower than in prime districts like Downtown Dubai, offering attractive value. A similar growth pattern was seen following the launch of Terminal 3 at Dubai International Airport in 2005, when surrounding areas such as Dubai Marina and Al Barsha experienced substantial appreciation. Between the launch and early 2008, average sale prices had nearly doubled. With demand surging and a long-term development pipeline in motion, the neighbourhood is emerging as one of the UAE's most promising real estate growth corridors. The $35bn terminal expansion is set to create employment and housing opportunities for over one million people, with far-reaching effects across multiple sectors. As job creation increases, population growth is expected to follow, driving greater demand for housing and supporting broader economic development. Surrounding areas are already experiencing a rise in transactions, property prices, rental rates and yields. The aviation sector alone is projected to contribute over 30 per cent to the emirate's GDP by 2030.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store