Salik announces H1 results, approves interim dividend of Dhs544.8m

Dubai toll gate operator Salik Company has reported a net profit of Dhs544.8m for H1 2024, driven by robust revenue growth and strategic expansion initiatives. The financial results, covering the three and six-month periods ending June 30, were announced by the company’s Board of Directors, chaired by Mattar Al Tayer.

Salik registered 238.5 million revenue-generating trips in H1 2024, reflecting a 4.9 per cent increase year-on-year.

Total revenue for the period reached Dhs1.1bn, with toll usage accounting for 87.1 per cent of the total at Dhs953.8m, up 4.9 per cent YoY.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 6.5 per cent to Dhs738.4m, and profit before tax increased by 9.2 per cent to Dhs598.6m.

The board approved an interim dividend of Dhs544.8m, or 7.263 fils per share, to be paid on September 5.

“We are very pleased with our performance during the first half of the year, with strong revenue growth of 5.6 per cent year-on-year, further supporting our ambition to become a global leader in mobility solutions,” said Al Tayer.

He noted the company’s focus on expanding its tolling business while diversifying revenue streams, including the planned addition of two new toll gates by November 2024 and a recent parking solutions partnership with Emaar Malls, operational since July.

Salik H1 2024: Key highlights

In Q2 2024, Salik achieved a 1.6 per cent YoY increase in revenue-generating trips, totalling 115.7 million – the highest second-quarter figure since the company’s inception. Growth was notably strong at the Jebel Ali toll gate, which saw a 10 per cent increase, while Al Maktoum Bridge and Al Safa gates experienced high-single-digit growth.

Salik’s CEO, Ibrahim Sultan Al Haddad, highlighted the company’s resilience and strategic efforts to enhance mobility in Dubai. “The increase in revenue-generating trips and active accounts reflects our commitment to meeting the growing demand for efficient transportation. As Dubai continues to attract international visitors and new residents, we are proud to play a pivotal role in making the city one of the most accessible in the world,” he said.

Financially, Salik’s revenue for Q2 2024 reached Dhs532.7m, a 3.1 per cent increase YoY. Revenue from fines and tag activation fees also saw significant growth, with fines up 8.4 per cent to Dhs57.2m and tag activation fees rising 53 per cent to Dhs10m.

Salik maintained strong profitability with an EBITDA of Dhs361.5m in Q2 2024, up 4.5 per cent YoY. However, introducing a 9 per cent corporate tax in the UAE led to a net profit after taxes of Dhs267.5m for the quarter, a slight 1.9 per cent decline YoY. Despite this, Salik’s balance sheet remains solid, with a net debt/EBITDA ratio of 2.05x, well below the company’s debt covenant of 5.0x.

Looking ahead, Salik is advancing its strategy to become a global leader in mobility solutions, with two new toll gates expected to be operational by the end of 2024.

The company also launched a barrier-free parking payment solution at Dubai Mall in partnership with Emaar Malls, and joined the UN Global Compact to further its sustainability goals.

Salik plans to update its financial guidance for the year later this month, factoring in the positive financial impact of the new toll gates, ancillary revenue streams, and the recent reduction in the RTA concession fee.

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