With more than 110.8 million revenue-generating trips in the third quarter of 2023, Salik has posted its best-ever Q3 numbers since operations commenced in 2007.
According to a statutory filing in Dubai Financial Market (DFM), revenues were 14.2 percent year-on-year at AED509 million ($138.6 million).
Salik reported net profit of AED255 million ($69.43 million), up 5.3 percent against the prior year.
Toll usage revenue, which represents 87.1 percent of total revenue, increased 14.6 percent YoY, the highest third-quarter performance since Salik commenced operations in 2007.
Revenue-generating trips were marginally below (-2.7 percent) the all-time record level of the second quarter of 2023, which the company attributed to seasonality, as activity tends to slow down during the third quarter due to summer holidays before picking up in the fourth quarter.
Active registered accounts and vehicles increased 13 percent and 8.8 percent reaching 2.4 million and 3.9 million respectively. This was also a great indicator of the economic vibrancy of Dubai and its attractiveness to tourists and new residents.
Mattar Al Tayer, Chairman of the Board of Directors, Salik, commented: “Salik continues to emerge as a leading toll gate operator globally, supported by a highly efficient business model and a buoyant local macroeconomic environment.
“Our strong and sustained momentum in the third quarter is also evidence that the Government of Dubai’s focus on expanding the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to tourists, is bearing fruit.”
Salik had an EBITDA margin of 64.9 percent for the quarter and reiterated its full-year financial guidance and expected revenue-generating trips to grow 9-10 percent compared to 2022 with an EBITDA margin in the range of 66-67 percent.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, added: “We are very encouraged by year-to-date performance as well as by supportive macroeconomic indicators for the remainder of the year.”
Al Maktoum Bridge gate leads Salik’s growth
The total number of trips, including discounted trips, made through Salik’s eight toll gates in the third quarter of 2023 grew 12.3 percent. As a result, revenue-generating trips increased 14.6 percent to 110.8 million in the third quarter, compared to 96.6 million trips in the same period of the prior year. During the first nine months of 2023, revenue-generating trips increased 12 percent YoY to 338.2 million.
The continued closure of the Floating Bridge made Al Maktoum Bridge gate the best-performing gate for Salik and saw the number of revenue-generating trips – excluding paid taxi trips – increase 61.4 percent YoY. Al Garhoud Bridge, similarly, saw the number of trips increase by 16.3 percent.
Excluding the two gates, Jebel Ali generated the maximum growth, increasing by nearly 17 percent, while Airport Tunnel was up approximately 14 percent.
Salik also informed that revenue from fines was up nearly 11 percent YoY to AED54 million ($14.7 million) from AED49 million ($13.34 million) in the prior year. The number of net violations grew nearly 13 percent to 665,000 in the third quarter of 2023.
In the third quarter, Salik generated free cash flow of AED359 million (#97.75 million), supported by continued strong traffic performance. The company incurred AED4.5 million ($1.23 million) of capital expenditures associated with IT and fit-out for the new eco-friendly office at Festival Tower.
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