Latest news with #SalikCompanyPJSC
Daily Tribune
5 days ago
- Business
- Daily Tribune
Dubai Toll Operator Raises 2025 Outlook
Dubai's exclusive toll gate operator reported a sharp rise in revenue and profit in the first half of 2025, boosted by new gates and the introduction of variable pricing. Salik Company PJSC said total revenue for the six months to June 30 rose 39.5 per cent year-on-year to AED 1.53 billion, while net profit grew 41.5 per cent to AED 770.9 million. The board has recommended a cash dividend of the same amount, equivalent to 10.278 fils per share, representing 100 per cent of H1 profit. New pricing boost The performance was driven by the first full quarter under the variable toll pricing system, introduced on January 31, and the opening of two additional gates in November 2024. Chargeable trips reached 318.4 million in H1, with 160.4 million in the second quarter alone. Toll usage fees rose 42.3 per cent to AED 1.36 billion, while fines increased 15.7 per cent to AED 134.3 million. Tag activation fees grew 16.2 per cent to AED 22.9 million. Ancillary revenues, including parking payment partnerships and insurance collaborations, brought in AED 8.7 million.
Zawya
6 days ago
- Business
- Zawya
Salik reports AED 1.53bln revenue in H1 2025, up 39.5% YoY; FY 2025 guidance upgraded
EBITDA of AED 1.07 billion in H1 2025, up 44.2% YoY Total chargeable trips reached 318.4 million in H1 2025 Net profit for the period grew 41.5% YoY to AED 770.9 million Salik Company PJSC ('Salik' or the 'Company'), Dubai's exclusive toll gate operator, today announced its financial results for the three-month and six-month periods ended June 30, 2025 ('Q2 2025' and 'H1 2025'). Total revenue for H1 2025 increased 39.5% YoY to AED 1,527.3 million, supported by a 45.6% YoY increase in Q2 2025. EBITDA grew 44.2% in H1 2025 to AED 1,065.0 million with an EBITDA margin of 69.7%. The solid results were driven by the two new gates introduced in November 2024 amidst an overall positive macro environment and the implementation of variable pricing which came into effect at the end of January 2025, with Q2 marking the first full quarter of the new variable pricing system. In Salik's core tolling business, total chargeable trips reached 318.4 million in H1 2025, with total chargeable trips of 160.4 million in Q2 2025, a 1.6% increase versus 158.0 million in Q1 2025. This was despite Q1 being a seasonally stronger period for Salik compared to Q2, alongside the redistribution of traffic during the Ramadan period in Q1. In view of the strong first half results, the Board of Directors have recommended a cash dividend of AED 770.9 million, equivalent to 10.278 fils per share, representing 100% of H1 2025 profit. His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said: 'Salik's strong performance in the first half of 2025 underscores the strength of its resilient business model and high operational efficiency. During this period, the Company achieved a 39.5% year-on-year increase in total revenue, further solidifying its robust financial position. This performance reaffirms our continued commitment to delivering long-term value for shareholders while supporting Dubai's vision of becoming a global leader in smart and sustainable mobility. In view of the strong first half results and our dedication to our shareholders, the Board of Directors have recommended a cash dividend of AED 770.9 million, equivalent to 10.278 fils per share, representing 100% of H1 2025 profit. His Excellency added: We continue to benefit from the Emirate's economic momentum, bolstered by sustained growth in tourism, real estate, and infrastructure spending. Building on this, and with continued progress across both our core tolling operations and ongoing success in expanding our ancillary revenue streams, we are pleased to be upgrading our full year 2025 guidance, with revenue expected to increase 34-36% compared to 2024, up from 28-29% previously, and with EBITDA margins expectations in the range of 68.5-69.5%. Our new guidance underscores our confidence in Salik's outlook and future growth potential, particularly given our commitment to strengthening our non-core offering and exploring new opportunities within ancillary revenues.' Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: 'We are pleased to report another solid quarter of performance, with a strong c.40% YoY growth across all key financial metrics including revenue, EBITDA and net profit growth. Our results reflect the ongoing strength of our tolling business and the growing contribution of our non-tolling initiatives, including our digital partnerships in providing mobility payment solutions which continue to gain traction amongst users. Total trip volumes remained resilient in the period, increasing 39.6% compared to H1 2024, supported by the addition of the two new gates, the ongoing population growth and record levels of tourism inflow, which increased 7% between January and May compared to last year with hotel occupancy also increasing to 83%, up from 81% in the prior year. Against this backdrop and with the visibility we now have into the second half of the year, we are highly confident in Salik's future growth, as seen in our revised revenue guidance for 2025, and we remain well-positioned to generate sustained value as we continue to scale, diversify, and innovate across the mobility ecosystem.' Financial Highlights (1) EBITDA is profit for the period, excluding the impact of interest, tax, depreciation and amortization expenses. Performance Review Core Tolling Business Million Q2 2025 Q2 2024 % YoY Q1 2025 % QoQ H1 2025 H1 2024 % YoY Total trips 213.4 147.9 44.3% 210.8 1.3% 424.2 303.9 39.6% Total chargeable trips 160.4 - - 158.0 1.6% 318.4 - - Peak trips (AED 6)* 57.7 - - 39.3 46.7% 96.9 - - Off-peak trips (AED 4)* 86.3 - - 107.5 -19.7% 193.8 - - Past Midnight trips (AED 0)* 16.4 - - 11.2 46.8% 27.6 - - Note: The implementation of variable pricing began on January 31, 2025. Therefore, all revenue-generating trips conducted between January 1 and January 30, 2025 in the Q1 2025 period, are categorized in the above table as off-peak trips, as the fare during that period remained fixed at AED 4 per trip. Q2 2025 represents the first full quarter since the implementation of variable pricing. Continued strong performance drives total revenue to AED 1,527.3 million in H1 2025, up 39.5% year-on-year The total number of trips, including discounted trips, made through Salik's toll gates grew 39.6% YoY in H1 2025 to record 424.2 million trips, driven by a strong 44.3% growth in trips in Q2 2025 reaching 213.4 million, supported by the addition of the two new gates and Dubai's robust macroeconomic conditions, tourism inflow and continued attraction of new residents. Total chargeable trips reached 160.4 million in Q2 2025, a 1.6% improvement compared to 158.0 million in Q1 2025, driven by strong growth in the use of Salik toll roads during the peak period (AED 6), which yielded 57.7 million trips, up 46.7% vs. Q1 2025, mainly due to the introduction of the two new gates, with trips in the past midnight period (AED 0), totaling 16.4 million, up 46.8% compared to Q1. The Q2 2025 period represented the first full quarter since implementing the new variable pricing system. It is noteworthy that all revenue-generating trips conducted between January 1 and January 30, 2025 during Q1 2025 were categorized under off-peak trips; hence the decline of 19.7% in off-peak chargeable trips between Q2 2025 and Q1 2025. Toll usage fees: performance was strong during the first half, increasing 42.3% YoY to AED 1,356.9 million, with toll usage fees growing 49.4% YoY to AED 691.3 million in Q2 2025. The increase in toll fees was primarily due to the first full quarter impact of the new variable pricing structure introduced at the end of January 2025, alongside the introduction of the two new gates. Fines: revenue from fines increased 15.7% YoY to AED 134.3 million in the first half, with fines growing 15.2% YoY to AED 65.9 million in Q2 2025. The number of net violations (accepted minus dismissed violations) grew by 20.3% YoY in Q2 2025, reaching 808,500 and representing 0.4% of net toll traffic, with revenue from fines contributing 8.5% to total revenue in Q2 2025. Tag activation fees: grew strongly in the first half, up 16.2% YoY to AED 22.9 million, with revenue growing 15.0% YoY to AED 11.5 million in Q2 2025. Tag activation fees contributed 1.5% of total revenue in Q2 2025. Ancillary Revenue Streams Total ancillary revenue for Salik reached AED 8.7 million during H1 2025 driven by revenues from Parking Payment Solutions partnerships with Emaar Malls and Parkonic. The strong performance was driven by increased transaction volumes at Dubai Mall in addition to increasing traction in its cooperation with Parkonic since the launch of the cooperation in mid-February, with rollout across several locations progressing well, as operations are now live in 73 out of 154 locations. Furthermore, the company's partnership with Liva Group has continued to gain good traction with consumers during H1 2025. Salik reaffirms its confidence in expanding its ancillary revenue streams over the medium to long-term. This follows the good progress made in 2024 and the first half of 2025, including the successful collaboration with Emaar Malls, its collaboration with Parkonic to integrate Salik accounts across all locations in the UAE and the continued collaboration with Liva Group to streamline the vehicle insurance renewal process. These collaborations 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 H1 2025, with EBITDA increasing 44.2% year-on-year, and a robust balance sheet position Salik generated EBITDA of AED 1,065.0 million in H1 2025, up 44.2% YoY, with Q2 2025 EBITDA increasing by 50.9% YoY to reach AED 545.3 million, Salik's strongest quarterly EBITDA recorded since inception. EBITDA margin reached 69.7% in H1 2025, a 230 bps YoY increase compared to 67.4% in H1 2024. EBITDA margin reached 70.3% in Q2 2025, compared to 67.8% in Q2 2024, representing a 250 bps expansion YoY, supported by strong revenue growth. Salik's net profit before taxes totaled AED 847.1 million in H1 2025, up 41.5% YoY. Net profit before taxes reached AED 439.8 million in Q2 2025, marking a strong 49.7% YoY increase despite higher finance costs in the period. Net profit before tax increased by 8.0% compared to Q1 2025. Salik generated net profit after taxes of AED 770.9 million in H1 2025, up 41.5% YoY. Net profit after taxes reached AED 400.2 million in Q2 2025, a 49.6% YoY increase. Net profit after taxes increased 8.0% compared to Q1 2025. Net profit margin expanded by 70 bps to 50.5% in H1 2025, with margin expanding 140 bps to 51.6% in Q2 2025 compared to Q2 2024. AED million Q2 2025 Q2 2024 % YoY Q1 2025 % QoQ H1 2025 H1 2024 % YoY Revenue 775.7 532.7 45.6% 751.6 3.2% 1,527.3 1,094.8 39.5% Toll usage fees 691.3 462.7 49.4% 665.6 3.9% 1,356.9 953.8 42.3% Fines 65.9 57.2 15.2% 68.4 -3.7% 134.3 116.1 15.7% Tag activation fees 11.5 10.0 15.0% 11.5 -0.1% 22.9 19.7 16.2% Other revenue 7.1 2.9 144.6% 6.0 16.9% 13.1 5.1 154.4% EBITDA(1) 545.3 361.5 50.9% 519.6 4.9% 1,065.0 738.4 44.2% EBITDA margin 70.3% 67.8% 2.5% 69.1% 1.2% 69.7% 67.4% 2.3% Finance costs, net (69.3) (46.5) 49.1% (76.2) -9.0% (145.6) (97.7) 49.0% Profit before tax 439.8 293.9 49.7% 407.2 8.0% 847.1 598.6 41.5% Income tax (39.6) (26.4) 49.8% (36.6) 8.1% (76.2) (53.8) 41.5% Net Profit for the period 400.2 267.5 49.6% 370.6 8.0% 770.9 544.8 41.5% Earnings per share 0.053 0.036 49.6% 0.049 8.0% 0.103 0.073 41.5% Dividends declared - - - - - 770.9 544.8 41.5% Dividends per share (Fils) - - - - - 10.278 7.264 41.5% (1) EBITDA is profit for the period, excluding the impact of interest, tax, depreciation and amortization expenses. Summary of balance sheet: net debt of AED 4,853.0 million, with T12M leverage improving to 2.55x compared to 2.7x in Q1 2025 Salik recorded a net working capital balance of AED -665.0 million as of June 30, 2025, equating to 21.8% as a percentage of annualized revenue, broadly in line with the level recorded in Q1 2025. The increase in net working capital in 2025 compared to prior quarters is driven by the semi-annual installments for the toll rights fees relating to the new toll gates, in addition to higher provisions for the corporate tax. As at June 30, 2025, net debt stood at AED 4,853.0 million, a 4.4% increase from AED 4,648.8 million at the end of Q1 2025. This translates to a trailing twelve-month net debt/EBITDA ratio of 2.55x in Q2 2025, an improvement versus the 2.7x at the end of Q1 2025 and well below the Company's debt covenant of 5.0x. AED million 30-Jun-25 31-Mar-25 % QoQ 31-Dec-24 % YTD Total assets, including: 8,077.3 8,494.4 -4.9% 7,985.9 1.1% Cash and cash equivalents 380.3 1,041.3 -63.5% 963.7 -60.5% Short term deposit with bank (1) 756.9 500.5 51.2% - - Total liabilities, including: 6,838.3 7,035.8 -2.8% 6,897.9 -0.9% Long term borrowings and related party payable liabilities(2) 5,983.3 6,182.9 -3.2% 6,154.3 -2.8% Contract liabilities (3) 398.4 403.5 -1.3% 382.3 4.2% Total equity 1,239.0 1,458.6 -15.1% 1,088.0 13.9% Net debt 4,853.0 4,648.8 4.4% 5,198.6 -6.6% Net working capital balance (4) (665.0) (681.2) -2.4% (536.8) 23.9% Represent Fixed deposit with original maturity of 3 to 12 months. Previously the term deposits had maturity less than 3 months and thus were classified as Cash Related party payable liability includes liability in relation to the toll operation rights for the two new gates Contract liabilities is the sum of current and non-current balances paid in advance by customers relating to recharges and top-ups and tag activation fees Net working capital is the balance of inventories plus trade and other receivables plus dues from related parties plus contract assets minus trade and other payables, minus current portion of due to a related party minus current portion of contract liabilities minus current portion of lease liabilities and provision for taxation. Summary of cash flow: free cash flow of AED 1,111.6 million, with a margin of 72.8% in H1 2025 Salik generated free cash flow of AED 1,111.6 million in H1 2025, up 62.4% YoY and a free cash flow margin of 72.8%, a 10.3 percentage points increase compared to 62.5% in H1 2024. Free cash flow reached AED 485.0 million in Q2 2025, up 46.1% YoY, with a free cash flow margin of 62.5%, a 20-bps improvement from 62.3% in Q2 2024.. AED million Q2 2025 Q2 2024 % YoY Q1 2025 % QoQ H1 2025 H1 2024 % YoY Operating cash flow before changes in working capital 554.3 373.7 48.3% 532.4 4.1% 1,086.7 760.8 42.8% Changes in working capital (68.8) (37.0) 85.8% 94.3 -173.0% 25.5 (70.5) -136.1% Net cash flow from operating activities 485.0 336.6 44.1% 626.7 -22.6% 1,111.6 690.3 61.0% Net cash (used in) / generated from investing activities (247.0) 2.0 - (497.5) -50.3% (744.5) 172.3 -532.0% Net cash (used in) / generated from financing activities (898.9) (611.1) 47.1% (51.6) - (950.5) (676.5) 40.5% Free cash flow(1) 485.0 331.9 46.1% 626.7 -22.6% 1,111.6 684.4 62.4% Free cash flow margin(2) 62.5% 62.3% 0.2% 83.4% -20.9% 72.8% 62.5% 10.3% Free cash flow is net cash flows from operating activities less purchases of property and equipment and intangibles plus proceeds from the sale of property and equipment Free cash flow margin is free cash flow divided by revenue 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. Q2 2025 represents the first full quarter of implementation of the new variable pricing system. Ancillary Revenue Streams – recap on key partnerships and initiatives Introduction of 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. Revenues from the partnership reached AED 5.6 million in H1 2025, with Q2 revenue reaching AED 2.9 million. Collaboration 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 Account into all the current locations it operates in as well as 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. The partnership is progressing well with the solution now available across 73 locations out of 154 locations. 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. Signed Memorandum of Understanding (MoU) with ENOC to introduce smart payment solutions that enhance 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 account. 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. Other Achievements Continued investment in human resources: in Q2 2025 Salik expanded its full-time workforce by 26.2% YoY to 53 personnel, representing 10.4% 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 30.2% in Q2 2025, with the female-to-workforce ratio at 20.8% at the end of the second quarter. Business Outlook - FY 2025 guidance revised upwards FY25 total YoY revenue growth upgraded from 28-29% to 34-36% Revenue growth: total revenue growth in FY25 is now expected to be in the range of 34-36% year-on-year, including the impact of the two new gates introduced in November 2024 and the implementation of variable pricing on January 31, 2025. This compares to the previous expectations of 28-29% year-on-year, with a normalized growth rate of 4-5% YoY. EBITDA margin: guidance updated and is expected to be in the range of 68.5-69.5% compared to the previous range of 68-69% -Ends- About Salik Company PJSC The Company was established in its current form, as a public joint stock company in June 2022 pursuant to Law No. (12) of 2022. 'Salik', which means 'seamless mobility' in Arabic, is Dubai's exclusive toll gate operator and manages the Emirate of Dubai's automatic toll gates utilizing Radio-Frequency-Identification (RFID) and Automatic-Number-Plate-Recognition (ANPR) technologies. The Company currently operates exclusively all the toll gates located at strategic junctures, especially on Sheikh Zayed Road, which is considered the main road in Dubai. Salik listed on the Dubai Financial Market (DFM) on 29th September 2022. Under a 49-year concession agreement (ending in 2071), with the Roads and Transport Authority (RTA), Salik has the exclusive right to operate existing and any future toll gates in Dubai. Investor Relations Wassim El Hayek Head of Investor Relations Disclaimer No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed as "forward-looking" are based upon various assumptions, including management's examination of historical operating trends, data contained in the Company's records, and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant risks, uncertainties, and contingencies. Forward-looking statements are not guarantees of future performance. Risks, uncertainties, and contingencies could cause the actual results of operations, financial condition, and liquidity of the Company to differ materially from those results expressed or implied in the document by such forward-looking statements. No representation or warranty is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. No reliance should be placed on any forward-looking statement. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this communication. Furthermore, no representation or warranty is made as to the accuracy, completeness, or reliability of the information contained in this document. The information, statements, and opinions provided herein do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy Salik Shares. In the event of any discrepancy or error in the numbers presented in this document, the information provided in the official financial statements shall prevail. We do not accept any liability for errors or omissions in the information contained herein.
Hi Dubai
19-05-2025
- Business
- Hi Dubai
Salik Achieves ISO 37001 Certification for Anti-Bribery Management System
Salik Company PJSC (Salik), the exclusive toll gate operator of the Emirate of Dubai, has achieved a major governance milestone by receiving the prestigious ISO 37001 certification for its Anti-Bribery Management System (ABMS). This global recognition underscores Salik's unwavering commitment to integrity, transparency, and ethical excellence across all its operations. The certification was awarded following a comprehensive evaluation of Salik's Anti-Bribery and Anti-Fraud framework, which is aligned with leading regulatory standards including those of the Securities and Commodities Authority (SCA), Dubai Financial Market (DFM), and UAE Companies Law (CCL). Salik's Compliance Section, owner of Anti Bribery management system within Salik, led the certification process, reinforcing the company's proactive approach to fostering a strong culture of accountability and corporate governance. Mr. Ibrahim Sultan Al Haddad, CEO of Salik, said: "Achieving ISO 37001 certification marks an important milestone in Salik's journey towards becoming a global benchmark in corporate governance and ethical business conduct. It reflects our deep commitment to operating with the highest standards of transparency and accountability, while creating sustainable value for our shareholders, stakeholders, and the broader community." ISO 37001 is the international standard for Anti-Bribery Management Systems, specifying a series of measures organisations can implement to prevent, detect, and address bribery. By meeting this standard, Salik demonstrates it has instituted best-in-class internal controls and proactive measures to mitigate corruption risks. This achievement strengthens Salik's position as a well-governed listed entity and enhances investor confidence in its ethical and transparent business practices. News Source: Salik
Emirates 24/7
04-03-2025
- Business
- Emirates 24/7
Salik Reports AED 2.3 billion of Revenue in 2024 with a Growth of 8.7%
Salik Company PJSC ('Salik' or the 'Company'), Dubai's exclusive toll gate operator, today announced its financial results for the three-month and year-ended December 31, 2024 ('Q4 2024' and 'FY 2024'). Total Revenue for the full year 2024 grew by 8.7% YoY to reach AED 2.3 billion while fourth quarter revenue grew 15.6% YoY amounting to AED 651 million. EBITDA for the full year reached AED 1.6 billion, a 13.6% YoY growth. In terms of operations, total revenue generating trips recorded 498.1 million, rising by 8.0% YoY at the back of the launch of the two new Salik gates. His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed his delight over the company's financial and operational results and said: 'Salik has reported a very strong year, with healthy revenue growth and record profitability performance. Our financial results for 2024 are a testament to the strength of our business model and strategy, and our commitment to delivering long-term value to shareholders. During the past year, Salik proudly reached significant strategic milestones, having introduced two new toll gates within the core tolling business and established multiple partnerships. These strategic partnerships support our ambition to become a global leader in providing sustainable and smart mobility solutions. They also reflect our commitment to delivering innovative solutions that enhance road user experience, expand our ancillary revenue streams and supports financial returns.' His Excellency also noted that, 'With this growth, we see promising opportunities to continue to increase and diversify our revenues, enhance our financial returns, and contributing to the long-term sustainability of our business. We look forward to achieving more operational, financial and strategic milestones in 2025'. Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: 'Our 2024 results were bolstered by particularly robust performance in the fourth quarter, with revenue-generating trips increasing 8% year-on-year, at the top end of our guided range. Growth in total revenue exceeded guidance, up by 8.7% year-on-year, along with very strong profitability, as our EBITDA margin reached 68.9%. We are optimistic about the positive trends in Dubai's economy, which align with and support our growth and vision. We are pleased to revise our guidance for FY25 upwards, projecting revenue growth of 28-29% compared to FY24, alongside an EBITDA margin of 68-69%. Our revised guidance includes contributions from the implementation of variable pricing and our two new gates, both of which have demonstrated the expected performance in their initial weeks of operation. I would like to reaffirm our confidence in expanding our ancillary revenue streams in 2025, following the successful collaboration with Emaar Malls to provide an innovative, barrier-free parking payment solution. We have further broadened our service offering in partnership with Parkonic to integrate Salik's e-wallet system across 107 parking locations in the UAE, in addition to our pioneering collaboration with Liva Group to streamline the vehicle insurance renewal process.' Continued strong performance drives revenue to AED 2,291.9 million in FY 2024, up 8.7% year-on-year The total number of trips, including discounted trips, made through Salik's toll gates grew 7.6% YoY in FY24, driven by Dubai's continued attraction of tourists and growth in commercial activities. Revenue-generating trips reached 498.1 million in the year, up 8.0% YoY, with revenue generating trips totaling 142.6 million in the fourth quarter, up 15.8% YoY, supported by commencement of operations of two new toll gates introduced at the end of November 2024. Growth remained strong across several established gates in the fourth quarter, with Al Garhoud Bridge seeing strong double-digit growth 15.9%, and Jebel Ali 8.5% and Airport Tunnel 5.2% seeing mid-high single digit growth. Toll usage fees: revenue during the year increased by 8.0% YoY to AED 1,992.5 million. The strong growth was supported by the growing inflow of tourists and increased movement of individuals across Dubai, with fourth-quarter toll usage fee revenues increasing 15.7% YoY to AED 570.2 million driven by the introduction of the new gates. Fines: revenue from fines increased 9.3% YoY to AED 236.9 million in the year, with the fourth quarter up 14.5% YoY to AED 62.1 million. The number of net violations (accepted minus dismissed violations) grew 5.4% YoY in Q4 2024, reaching c.730,000. Net violations during the fourth quarter represented 0.4% of net toll traffic, with revenue from fines contributing 10.3% to total revenue in FY24. Tag activation fees: grew strongly in the year, with revenue increasing 7.0% YoY to AED 40.9 million. Tag activation fees contributed 1.8% of total revenue in FY24. Ancillary Revenue Streams Total revenue from parking partnership with Emaar Malls reached AED 5.8 million in FY24 having launched on 1 July 2024, driven by a high number of transactions. The barrier-free parking payment solution processed 100% seamless transactions, in line with Salik's ambitions to deliver a seamless paid parking system to enhance the guest experience, improve parking availability and streamline the payment process, with 100% of the transactions being autopayment. Salik reaffirms its confidence in expanding its ancillary revenue streams in 2025 following its successful collaboration with Emaar Malls, its recent 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 reflects Salik's commitment to delivering innovative solutions that enhance user experience and strengthens Salik's position to increase its revenues and diversify its income streams, both of which will contribute to the long-term sustainability of the business. Financial Performance Strong profitability in FY24, with EBITDA increasing 13.6% year-on-year, healthy balance sheet in place Salik generated EBITDA of AED 1,579.1 million in FY24, up 13.6% YoY from AED 1,390.1 million in FY23, driven by strong EBITDA growth in the fourth quarter, with EBITDA growing 26.7% YoY to AED 464.1 million, Salik's highest quarterly EBITDA performance since inception. EBITDA margin reached 68.9% in FY24, compared to 65.9% in FY23, representing a c.300 bps YoY expansion. Margins expanded significantly in the fourth quarter to 71.3%, c.630bps YoY expansion compared to 65.0% in Q4 2023 and 69.0% in Q3 2024. Salik's net profit before taxes totaled AED 1,279.7 million in FY24, marking a strong 16.6% YoY increase, with fourth quarter profit before tax increasing 27.5% YoY to AED 376.4 million. Salik generated net profit after taxes of AED 1,164.5 million in FY24, a 6.1% YoY increase, with fourth quarter profit after tax reaching AED 342.5 million, up 16.0% compared to Q4 2023, despite the introduction of the 9% corporate tax in the UAE in 2024. In light of the strong year performance, the Board of Directors propose a dividend of AED 619.8 million to be paid during H1 2025 (equivalent to 8.2645 Fils per share). This brings total dividends for FY24 to AED 1,164.5 million representing 100% of FY24 net profit and a 6.1% YoY increase compared to FY23. Summary of balance sheet: net debt of AED 5,198.6 million, with leverage of 3.29x Net Debt to EBITDA Salik recorded a net working capital balance of AED -536.8 million as of December 31, 2024, equating to c.-23% as a percentage of annualized revenues. The significant growth in net working capital is mainly due to 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 December 31, 2024, net debt stood at AED 5,198.6 million, up from AED 3,163.3 million at the end of September 2024, mainly due to the payable of the concessionary rights to RTA, pertaining to the two new toll gates. This translates to a trailing twelve-month net debt/EBITDA ratio of 3.29x, significantly below the Company's debt covenant of 5.0x. Summary of cash flow: free cash flow of AED 1,457.3 million, with a margin of 63.6% Salik generated free cash flow of AED 1,457.3 million in FY24, up 0.5% YoY, with a free cash flow margin of 63.6%. Free cash flow reached AED 402.6 million in the fourth quarter, -1.5% year-on-year, but up 8.7% compared to the Q3 2024 period, with a free cash flow margin of 61.8%. The free cash flow margin declined by c.510 bps year-on-year, mainly relating to the payments of the concessionary rights to RTA, pertaining to the two new toll gates. Becoming a global leader in smart and sustainable mobility solutions Core Tolling Business Implementation of variable pricing: As instructed by the RTA, 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. Based on initial projections, the new pricing model is expected to generate additional revenue of AED 60-110 million on an annual basis. Valuation of two new gates: Salik continued to make progress on its updated strategy throughout 2024, 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 two equal instalments, every six months over a six-year period. Ancillary Revenue Streams Salik collaborates with Parkonic, one of the largest private parking operator 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. 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. 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 will offer one-of-a-kind bespoke insurance solutions to drivers in the UAE, streamlining the renewal process for greater convenience and efficiency. Salik will leverage its comprehensive database to provide value-added services to customers by sending timely renewal reminders to mitigate insurance coverage lapses. These notifications will 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. Salik commenced seamless parking operations at Dubai Mall: This milestone marked Salik's first barrier-free parking payment solution, in partnerships with Emaar Malls, across the Fashion, Grand and Cinema parking zones, started on July 1, 2024. Other Key Achievements Salik was assigned strong investment grade credit ratings by Moody's and Fitch Ratings: This milestone affirms Salik's robust financial position, operational strength, and approach to enhancing transparency while optimizing access to capital markets. The assignment of credit ratings to Salik follows the request for a public rating by the Company. Salik joined the UN Global Compact: In July 2024, Salik joined the United Nations Global Compact, the leading global initiative for corporate sustainability, demonstrating its commitment to ethical business practices and sustainable operations. By aligning with the UN Global Compact's principles, Salik aims to enhance social and environmental responsibility while contributing to the UAE's sustainable development goals. The Company will actively pursue initiatives that reduce its environmental impact, support social progress and promote a sustainable future for the UAE. Continued investment in human resources: In 2024 Salik expanded its full-time workforce by 20% YoY, to 48 personnel, with the number of nationalities represented at 12. Salik continues to progress on Emiratization, attaining a level of 31.3% by the end of the year, a sequential improvement vs. 30.4% in Q3 2024. Business Outlook - FY25 Guidance Revised Upwards FY25 total revenue growth expected to increase 28-29% YoY, including the contribution from two new toll gates Revenue growth: total revenue growth in FY25 is now expected to be in the range of 28-29% year-on-year, an increase compared to our previous guidance of 25-26%, this includes 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, we continue to expect total revenue to increase 4-5% YoY in FY25. EBITDA margin: is expected to be in the range of 68-69% compared to previous guidance of 67-68%. Follow Emirates 24|7 on Google News.
Hi Dubai
04-03-2025
- Business
- Hi Dubai
Salik Company PJSC Reports Strong Growth in 2024 with Strategic Milestones and Enhanced Financial Performance
Dubai's exclusive toll gate operator, Salik Company PJSC, has announced impressive financial results for the year ended December 31, 2024, marking a significant milestone in the company's growth trajectory. 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
