Salik Company, Dubai’s exclusive tollgate operator, today announced its financial results for the three-month and nine-month periods that ended September 30, 2024, revealing that it registered 355.6 million revenue-generating trips in the first nine months of 2024. This continued strong performance drove revenue to AED1.64 billion ($446.75 million) in the first nine months of 2024, up 6.2 percent annually.
Revenue from toll usage, comprising 86.7 percent of total revenue, rose 5.1 percent annually to AED1.42 billion in the nine-month period, with third-quarter revenue from tolls increasing 5.7 percent annually to AED468.4 million.
“With our inaugural parking solution at Dubai Mall now in full swing, and the operation of the two new toll gates starting on November 24, 2024, we remain encouraged by positive trends in Dubai’s economy, which are supportive of our own growth,” stated Ibrahim Sultan Al Haddad, CEO of Salik.
Profits rise to AED822 million
During the first nine months of 2024, Salik reported EBITDA of AED1.115 billion, up 8.9 percent annually, and profit before tax of AED903.3 million, up 12.5 percent annually. The strong growth in the nine-month period was driven by a double-digit year-on-year increase in EBITDA in the third quarter, having increased 14 percent annually to AED376.7 million, the highest third-quarter EBITDA in Salik’s history.
Salik also reported a net profit before taxes of AED903.3 million in the first nine months, marking a strong 12.5 percent increase year-on-year, with third-quarter profit before tax increasing 19.6 percent annually to AED 304.7 million.
Following the implementation of a new 9 percent corporate tax in the UAE in 2024, Salik generated net profit after taxes of AED822.0 million for the nine-month period, a 2.4 percent annual increase, with third-quarter profit after tax increasing by high single digits, up 8.8 percent annually to AED277.3 million.
Free cash flow reaches AED1.054 billion
Salik also generated a free cash flow of AED1.054 billion in the nine-month period, up 1.3 percent annually, with a free cash flow margin of 64.3 percent. Free cash flow reached AED370.3 million in the third quarter, up 3.2 percent year-on-year, with a free cash flow margin of 67.8 percent.
Revenue stream expansion
Salik is advancing toward its strategy with the introduction of two new toll gates in Dubai and the combined valuation of the two new toll gates at Business Bay and Al Safa South. The two new gates are worth a total of AED2.734 billion, with the Business Bay Gate worth AED2.265 billion and the Al Safa South Gate worth AED469 million.
Salik also made an important step in expanding its ancillary revenue streams through the third quarter, with the successful launch of its barrier-free parking payment solution at Dubai Mall in July 2024
The first full quarter performance of the parking solution has been strong, with a revenue contribution of AED2.57 million in the three months since launching. The barrier-free parking payment solution processed a total of 3.8 million transactions, all of which were 100 percent seamless.
Read: Parkin revenues surge 25 percent to $65.12 million in Q3 2024
Total revenue to rise 7-8 percent this year
Salik’s full-year expectations remain steady. The company expects total revenue and revenue-generating trips to rise by 7-8 percent in 2024. This forecast includes potential revenues from the two new gates.
Salik has also announced its financial guidance for FY25, with total revenue growth forecasts at 25-26 percent year-on-year. The company also expects revenue-generating trips to grow by 24-25 percent annually in FY25, with an EBITDA margin in the range of 67-68 percent.
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