Latest news with #tolling
CBS News
27-05-2025
- Business
- CBS News
NYC congestion pricing heads to court as MTA fights Trump administration's push to end program
A hearing will be held Tuesday on the future of congestion pricing in New York City. The Metropolitan Transportation Authority filed a preliminary injunction to fight efforts by the Trump administration to end the controversial tolling program. The hearing is set for 10 a.m. Tuesday at the federal courthouse in Lower Manhattan. A group of congestion pricing advocates, including City Comptroller Brad Lander, will rally outside the court at 9:15 a.m. to show their support for the program. NYC congestion pricing still in effect The MTA is asking the court to stop the U.S. Department of Transportation from following through on its threat to end congestion pricing. In court Tuesday, each side will have 45 minutes to present their arguments. If the preliminary injunction is granted, the DOT would not be able to penalize the MTA for keeping the cameras on until the court makes a final decision in the case. The hearing comes after Transportation Secretary Sean Duffy gave New York multiple deadlines to stop the program. He said federal funding would be withheld for future programs in the city, like the Second Avenue Subway, and even in other parts of the state. The most recent deadline was imposed on May 21. The MTA sent a letter to Duffy last week saying congestion pricing is legal and that he doesn't have the authority to terminate it. The MTA said, as of April, there were 12% fewer vehicles entering the Congestion Relief Zone on a typical day compared to before the toll. Duffy has said he sees congestion pricing as a burden to low and middle income drivers, truck drivers and businesses. After last week's deadline passed, the DOT said it may implement "compliance actions" as soon as May 28. The MTA board is also scheduled to meet Wednesday and is expected to share an update on the efforts.
Zawya
14-05-2025
- Business
- Zawya
Salik added to MSCI UAE Index, widening access to global investors
Dubai, UAE: Salik Company PJSC ('Salik' or the 'Company'), Dubai's exclusive toll gate operator, announces that it has been included in the MSCI UAE Index as per the review announcement by MSCI on 13 May 2025, widely recognised as an important benchmark for decision-making by global investors in Emerging Markets. The MSCI UAE Index, which is a component of the MSCI EEMEA Index, is designed to measure the performance of large and mid-cap segments of the UAE equity market. Index inclusion typically supports increased liquidity for a company's shares and can help to attract more regional and global institutional and index-tracking investors, including those with a focus on Emerging Market equities. Salik's inclusion in the MSCI UAE Index follows the execution of its updated strategy since its implementation in 2024. In core tolling, Salik's proposition has been enhanced by the launch of two new gates in Dubai, taking the total number of toll gates from eight to ten, and the introduction of dynamic pricing, which is expected to drive additional revenue for the business. Alongside core tolling, Salik is expanding ancillary revenue streams including parking solution partnerships with Emaar Malls and Parkonic, and a first-of-its-kind insurance partnership with Liva, a leading multi-line insurer in the GCC. Meeting the necessary market capitalization, free float-adjusted market capitalization and liquidity requirements for inclusion in the Index demonstrates Salik's robust financial performance and unique value proposition, which has resonated with a local and international institutional investor base. Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: 'MSCI's UAE Index offers global investors ease of access and a compelling opportunity to capitalize on the UAE's thriving equity market. We are very encouraged by Salik's inclusion in the Index and would like to thank our investors for their trust in Salik's equity story. This milestone is a testament to our performance and strategic achievements since listing on DFM, in particular the strength of our business model, our unique value proposition and robust financial track record. Salik remains focused on its ambition to become a global leader in providing smart and sustainable mobility solutions. We look forward to continuing to create value for shareholders through 2025 and beyond.' All changes to the MSCI EEMEA Index, of which the MSCI UAE Index is a part, will be effective 2nd of June 2025. 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 utilising Radio-Frequency-Identification (RFID) and Automatic-Number-Plate-Recognition (ANPR) technologies. The Company currently operates 10 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 E:
Zawya
13-05-2025
- Business
- Zawya
Salik reports $205mln in revenue for Q1 2025
DUBAI - Salik Company, Dubai's exclusive toll gate operator, today announced its financial results for the three-month period ended 31st March 2025 (Q1 2025). Total revenue for Q1 grew by 33.7 percent YoY to reach AED751.6 million. EBITDA for Q1 increased 37.9 percent YoY to AED519.6 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. EBITDA margin reached 69.1 percent in Q1 2025, compared to 67.1 percent 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 percent in FY24. Salik's net profit before taxes totaled AED407.2 million in Q1 2025, marking a strong 33.6 percent YoY increase. 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 fuelling our positive momentum and creating a strong foundation for long-term sustainable growth." He added that the company expects annual total revenue to grow by between 28 - 29 percent, expressing optimism about diversifying its operations, expanding beyond the Emirate of Dubai, and exploring new partnerships aimed at enhancing customer experience — all of which are expected to contribute positively to both short- and long-term profit 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 percent. Total revenue from Salik's parking partnerships with Emaar Malls and Parkonic reached AED2.8 million in Q1 2025.
Gulf Business
13-05-2025
- Business
- Gulf Business
How much is Dubai's Salik making in 2025? Here's the latest
Image credit: WAM/Website 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 per cent year-on-year to reach Dh751.6m. Read- EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the first quarter increased 37.9 per cent year-on-year to Dh519.6m. In Salik's core tolling business, total chargeable trips reached 158.0m following the introduction of variable pricing at the end of January 2025 and the launch of two new toll gates in November 2024, a Strategic commentary 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 per cent 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.' '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 158m, with total revenue growth exceeding 30 per cent. Profitability is also robust, with EBITDA growth of more than 35 per cent, delivering an industry-leading EBITDA margin of 69.1 per cent. 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 per cent, and an EBITDA margin of 68–69 per cent as we continue to strengthen our non-core offering while tapping new opportunities,' Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented. Core tolling business The total number of trips, including discounted trips, made through Salik's toll gates grew 35.1 per cent year-on-year 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 158.0m in Q1 2025. Of these, 39.3 million occurred during the peak period (Dh6), and 107.5 million during the off-peak period (Dh4). Additionally, 11.2m trips were made past midnight (Dh 0). Toll usage fees: Revenue grew 35.5 per cent year-on-year to Dh665.6m, due to new pricing and gates. Fines: Revenue rose 16.2 per cent year-on-year to Dh 68.4m. Net violations reached about 786,000, accounting for 0.4 per cent of net toll traffic. Tag activation fees: Up 17.4 per cent to Dh 11.5m, making up 1.5 per cent of total Q1 revenue. Ancillary revenue streams Revenue from parking partnerships (Emaar Malls and Parkonic) totaled Dh2.8m. Dubai Mall saw strong user engagement, and Parkonic integration continues into Q2 2025. The partnership with Liva Group contributed Dh0.5m through streamlined vehicle insurance renewal services. Salik continues to expand its ancillary streams, building on 2024 milestones like the e-wallet integration across 107 UAE parking locations and new mobility solutions. Financial performance Strong profitability in Q1 2025, with EBITDA increasing 37.9 per cent year-on-year, and a robust balance sheet EBITDA: Dh519.6m, up from Dh 376.9m in Q1 2024. EBITDA margin rose to 69.1 per cent from 67.1 per cent. Net profit before tax: Dh407.2m, up 33.6 per cent year-on-year. Net profit after tax: Dh370.6m, also up 33.7 per cent year-on-year. Balance sheet and cash flow Net debt: Dh4,648.8m, down 10.6 per cent from year-end 2024. Leverage stood at 2.7x Net Debt to EBITDA. Free cash flow: Dh626.7m in Q1 2025, up 77.8 per cent year-on-year, with a margin of 83.4 per cent. Strategy and expansion Implementation of variable pricing As instructed by the RTA, Salik introduced variable pricing on January 31, 2025, to improve traffic flow and efficiency. New toll gates Business Bay and Al Safa South gates began operations in November 2024. Their combined valuation is Dh 2.734bn, payable in instalments over six years. Ancillary partnerships and innovations Dubai Mall parking: Salik's barrier-free payment launched on July 1, 2024. Parkonic: 5-year partnership to integrate e-wallet at 107+ locations. Liva Insurance: Partnership offers simplified renewals and customer notifications. Customised Salik tags: New initiative allowing corporate clients to personalize tags. Additional milestones ENOC MoU: Integration of smart payments for fuel and services via Salik's e-wallet. Workforce growth: Headcount up 29 per cent year-on-year, with Emiratization at 29.6 per cent and female workforce at 20.4 per cent. Business Outlook FY25 total revenue guidance remains unchanged Revenue: Expected to grow 28–29 per cent year-on-year, with 4–5 per cent growth excluding new gates. EBITDA margin: Projected at 68–69 per cent.
Zawya
13-05-2025
- Business
- Zawya
Salik reports AED 751.6mln in revenue for Q1 2025, up 33.7% YoY
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%.
