Dubai toll operator Salik has announced a 3 percent increase in its fourth-quarter profit, driven by higher revenue from toll gates. According to the company’s regulatory filing to the Dubai Financial Market, its net profit for the period reached AED295 million ($80.31 million). Salik’s revenue for the quarter rose by 12.2 percent to AED563 million, offsetting a 21 percent rise in net finance costs.
Read more: Salik expands with two new toll gates in Dubai, enhancing traffic flow and driving growth
During the fourth quarter, revenue-generating trips increased by 11.1 percent year-over-year to 123.2 million, contributing significantly to Salik’s overall revenue. For the full-year 2023, the company’s profit was approximately AED1.1 billion, compared to AED1.33 billion the previous year. The company attributed this growth to a strong macroeconomic environment and positive tourism trends. Revenue for the same period increased by 11.4 percent to AED2.11 billion ($574.45 million)
In 2023, revenue-generating trips reached a record high of 461.4 million, marking an 11.7 percent annual increase. Salik anticipates a 4-6 percent year-on-year growth in revenue-generating trips for 2024, maintaining a robust EBITDA margin of 65 percent to 66 percent.
100% dividend
Given the impressive results, the Board of Directors has recommended distributing 100 percent of the net profit from the second half of 2023 as dividends to shareholders, totaling AED550 million. This translates to 7.3338 fils per share. Dividends for 2023 therefore amounted to AED1.098 billion, equivalent to 14.6395 Fils per share, with AED548 million (7.3057 Fils per share) already distributed for the first half of 2023.
Salik’s initial public offering (IPO), a part of the Dubai government’s financial market expansion strategy, raised Dh3.73 billion in September 2022. The offering was oversubscribed by more than 49 times, with total gross demand reaching Dh184.2 billion across all tranches.
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