Salik Company, the exclusive toll gate operator in Dubai, recorded in the first quarter of 2024 122.8 million revenue-generating trips, resulting in a total revenue of AED562 million ($153 million).
This represents an 8.1 percent year-over-year (YoY) increase, marking the highest number of revenue-generating trips for a first quarter since the company’s inception.
Toll usage revenue, which accounts for 87.4 percent of the total revenue, also grew by 8.1 percent YoY to AED491 million ($133.67 million).
This growth was supported by the continued rise in tourism and residency, with Dubai remaining an attractive destination for both visitors and new residents.
Chairman Mattar Al Tayer expressed his satisfaction with the results, highlighting the company‘s strategic vision and commitment to delivering long-term value to shareholders.
He also acknowledged the positive macroeconomic environment in the UAE.
For his part, CEO Ibrahim Sultan Al Haddad commented on the strategic progress made during the first quarter, including the announcement of two new toll gates in Dubai, which are scheduled to become operational in November of the same year.
Read more: Dubai’s Salik approves distribution of $149.75 million of cash dividends
Mobility highlights
In terms of mobility highlights, Salik experienced an 8.1 percent YoY growth in revenue-generating trips, reaching a total of 122.8 million trips in Q1 2024.
The overall number of trips, including discounted trips, through Salik’s eight toll gates increased by 6.2 percent YoY, driven by Dubai’s appeal to tourists and normal commercial activities.
The Al Maktoum Bridge gate witnessed a significant 49.0 percent YoY increase in revenue-generating trips, attributed to the closure of the nearby Floating Bridge and the redirection of traffic.
Similarly, the Al Garhoud Bridge recorded a 9.1 percent YoY increase. Excluding both bridges, Salik saw a 5.3 percent YoY growth in revenue-generating trips during the first quarter.
Several other gates, such as Jebel Ali, Airport Tunnel, and Al Mamzar North, also experienced growth in the high-single digit range.
The number of active accounts grew by over 16 percent, reaching a new record high, while registered vehicles increased by 9.2 percent YoY to 4.1 million.
Growth in active accounts, registered vehicles
Approximately 2.5 million active accounts were registered in Q1 2024, indicating a 16.5 percent YoY increase compared to the same period in 2023.
The activation of tags also increased by almost 13 percent YoY, reaching approximately 242,000 tags in the first quarter.
Additionally, the number of vehicles registered with Salik grew by 9.2 percent YoY, reflecting Dubai’s successful efforts to expand its economy and attract tourism and new residents.
Salik continued to provide tariff exemptions for vehicles used by charities, schools, people with disabilities, ambulances, and other public services.
The number of free-of-charge trips made by exempted vehicles through Salik’s toll gates increased by 5.1 percent YoY to approximately 2.1 million in Q1 2024.
This growth was mainly driven by an increase in the number of registered exempted vehicles, which reached 53,819 by the end of the quarter, marking a 10 percent YoY increase.
Salik maintained strong profitability, with EBITDA increasing by 8.4 percent YoY to AED377 million in Q1 2024.
The EBITDA margin for the quarter was 67.1 percent, compared to 66.8 percent in Q1 2023 and 65.0 percent in Q4 2023.
The company achieved a 10.9 percent YoY growth in net profit before taxes, amounting to AED304.5 million in Q1 2024.
Despite the implementation of a 9 percent corporate tax, Salik managed to maintain a 0.7 percent YoY growth in net profit after tax, reaching AED277 million.
Salik also generated a solid free cash flow of AED354 million, with a margin of 62.9 percent.
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