Salik Company PJSC, Dubai’s exclusive toll gate operator, chaired by Mattar Al Tayer, has approved the financial results for the year ending December 31, 2023.
The Company reported a strong top-line performance, with revenue reaching AED2,109 million, a record high.
Toll usage revenue, which accounts for 87.5 percent of total revenue, increased by 11.7 percent year-on-year, reaching AED1,845 million, the company said in a filing on Monday.
Salik’s revenue-generating trips hits 461.4 million in 2023
“Salik has reported another strong year, with record top-line performance supported by continued strength in revenue generating trips. The achieved results for 2023 are a testament to our strategic vision and commitment to delivering long-term value to our shareholders, as well as to the positive macroeconomic environment in the UAE. GDP growth coupled with strong tourism inflow are evidence that the Government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit,” Mattar Al Tayer, Chairman of the Board of Directors said.
In terms of mobility highlights, Salik saw a growth of 11.7 percent in revenue-generating trips in 2023, reaching a new record of 461.4 million. Registered vehicles increased by 9 percent year-on-year to 4 million, while active accounts grew by over 15 percent.
“Salik is continuing to make good progress on delivering its long-term objectives, in line with our ambition to become a global leader in mobility solutions. We are thriving in the tolling business and remain focused on strengthening our core business offering as we expand our footprint within Dubai. At the same time, we are committed to delivering sustainable growth, with our updated strategy purpose-built to widen the revenue generating opportunities that we pursue. In the fourth quarter of 2023, we were delighted to announce our partnership with Emaar to provide technology solutions for barrier-free parking at the world-famous Dubai Mall, and we look forward to pursuing similar initiatives in the year ahead,” Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik added.
Sailk records revenue increase of 11.4 percent
Financially, Salik recorded a revenue increase of 11.4 percent year-on-year, reaching AED 2,109 million for the fiscal year 2023.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached AED1,390 million with a margin of 65.9 percent. Net profit for the period was AED1,098 million.
The Board of Directors recommended distributing 100 percent of the second half of 2023 net profit as dividends to shareholders, totaling AED550 million.
Salik also provided an update on its corporate strategy, announcing plans to become a global leader in providing sustainable and smart mobility solutions over the next five years. This includes diversifying revenue streams and expanding its portfolio of mobility services.
Looking ahead, Salik expects revenue-generating trips for the full year 2024 to increase in the range of 4-6 percent year-on-year, with a robust EBITDA margin in the range of 65-66 percent.
Salik Company PJSC, established in its current form as a public joint stock company in June 2022, operates as Dubai’s exclusive toll gate operator under a 49-year concession agreement with the Roads and Transport Authority (RTA).
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