Dubai’s toll gate operator Salik has revealed its financial outcomes for the three-month and year ending December 31, 2024. Total revenue for the full year 2024 increased by 8.7 percent year-on-year, reaching AED2.3 billion ($626.2 million), while revenue for the fourth quarter climbed by 15.6 percent year-on-year, amounting to AED651 million. EBITDA for the full year reached AED1.6 billion, reflecting a 13.6 percent year-on-year growth. In operational terms, total revenue-generating trips hit 498.1 million, marking an 8.0 percent year-on-year increase, bolstered by the introduction of two new Salik gates.
His Excellency Mattar Al Tayer, chairman of the Board of Directors of Salik, expressed his satisfaction with the company’s financial and operational results, stating: “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 support financial returns.” His Excellency also remarked, “With this growth, we see promising opportunities to continue to increase and diversify our revenues, enhance our financial returns, and contribute to the long-term sustainability of our business. We look forward to achieving more operational, financial, and strategic milestones in 2025.”
Revenue-generating trips up 8 percent year-on-year
Ibrahim Sultan Al Haddad, chief executive officer of Salik, noted: “Our 2024 results were bolstered by particularly robust performance in the fourth quarter, with revenue-generating trips increasing 8 percent year-on-year, at the top end of our guided range. Growth in total revenue exceeded guidance, up by 8.7 percent year-on-year, along with very strong profitability, as our EBITDA margin reached 68.9 percent. 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 percent compared to FY24, alongside an EBITDA margin of 68-69 percent. 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.”
Revenue-generating trips
The total number of trips, including discounted trips, made through Salik’s toll gates grew by 7.6 percent year-on-year in FY24, driven by Dubai’s ongoing appeal to tourists and the expansion of commercial activities.
Revenue-generating trips reached 498.1 million for the year, up by 8.0 percent year-on-year, with revenue-generating trips totaling 142.6 million in the fourth quarter, reflecting a 15.8 percent year-on-year increase, supported by the commencement of operations of two new toll gates introduced at the end of November 2024. Growth remained robust across several established gates in the fourth quarter, with Al Garhoud Bridge witnessing strong double-digit growth of 15.9 percent, while Jebel Ali and Airport Tunnel recorded mid-high single-digit growth of 8.5 percent and 5.2 percent, respectively.
Toll usage fees: revenue rose by 8 percent YoY to AED1,992.5 million
The strong growth was facilitated by the increasing influx of tourists and heightened movement of individuals throughout Dubai, with fourth-quarter toll usage fee revenues rising by 15.7 percent year-on-year to AED570.2 million, driven by the introduction of the new gates.
Fines: revenue from fines increased 9.3 percent YoY
The fourth quarter saw a 14.5 percent year-on-year increase to AED62.1 million. The number of net violations (accepted minus dismissed violations) grew by 5.4 percent year-on-year in Q4 2024, reaching approximately 730,000. Net violations during the fourth quarter represented 0.4 percent of net toll traffic, with revenue from fines contributing 10.3 percent to total revenue in FY24.
Tag activation fees grew strongly in the year
Tag activation fees accounted for 1.8 percent of total revenue in FY24.
Total revenue from the parking partnership with Emaar Malls reached AED5.8 million in FY24, having launched on July 1, 2024, driven by a high volume of transactions. The barrier-free parking payment solution facilitated 100 percent seamless transactions, in line with Salik’s mission to deliver a seamless paid parking system that enhances guest experience, improves parking availability, and streamlines the payment process, with all 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 reflect Salik’s commitment to delivering innovative solutions that enhance user experience and strengthen 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.
EBITDA increased 13.6 percent year-on-year
Salik generated EBITDA of AED1,579.1 million in FY24, marking a 13.6 percent year-on-year increase from AED1,390.1 million in FY23, driven by robust EBITDA growth in the fourth quarter, with EBITDA rising by 26.7 percent year-on-year to AED464.1 million, marking Salik’s highest quarterly EBITDA performance since inception.
The EBITDA margin reached 68.9 percent in FY24, compared to 65.9 percent in FY23, representing an approximate 300 basis points year-on-year expansion. Margins expanded significantly in the fourth quarter to 71.3 percent, approximately 630 basis points year-on-year compared to 65.0 percent in Q4 2023 and 69.0 percent in Q3 2024.
Salik’s net profit before taxes totaled AED1,279.7 million in FY24, reflecting a robust 16.6 percent year-on-year increase, with fourth quarter profit before tax increasing by 27.5 percent year-on-year to AED376.4 million.
Salik generated net profit after taxes of AED1,164.5 million in FY24, a 6.1 percent year-on-year increase, with fourth quarter profit after tax reaching AED342.5 million, up by 16.0 percent compared to Q4 2023, despite the implementation of the 9 percent corporate tax in the UAE in 2024.
In light of the strong performance throughout the year, the Board of Directors proposed a dividend of AED619.8 million to be paid during H1 2025 (equivalent to 8.2645 Fils per share). This brings total dividends for FY24 to AED1,164.5 million, representing 100 percent of FY24 net profit and a 6.1 percent year-on-year increase compared to FY23.
Summary of balance sheet
Salik recorded a net working capital balance of AED-536.8 million as of December 31, 2024, equating to approximately -23 percent as a percentage of annualized revenues. The significant growth in net working capital is primarily attributed to RTA concession fees associated with the toll rights fee for the new toll gates, as well as increased provisions for the corporate tax introduced in January 2024. As of December 31, 2024, net debt stood at AED5,198.6 million, a rise from AED3,163.3 million at the end of September 2024, mainly due to payable of the concessionary rights to RTA, related 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.
Read more: Dubai’s Salik posts $153 million in revenues from 122.8 million trips in Q1 2024
Cash flow of AED1,457.3 million, with a margin of 63.6 percent
Salik generated free cash flow of AED1,457.3 million in FY24, reflecting a 0.5 percent year-on-year increase, with a free cash flow margin of 63.6 percent. Free cash flow reached AED402.6 million in the fourth quarter, down 1.5 percent year-on-year, but up 8.7 percent compared to the Q3 2024 period, with a free cash flow margin of 61.8 percent. The free cash flow margin declined by approximately 510 basis points year-on-year, primarily due to payments of the concessionary rights to RTA, associated with the two new toll gates.
