Salik, Dubai’s largest toll operator, has released its financial results today for the first half of 2024, which is nothing short of stunning. The company has seen a net profit after tax of $148.5 million (AED 544.8 million)-recorded through solid achievements in all key financial metrics. The results highlight Salik’s continued performance and achievement through strategic expansion.
PC: Bloomberg
Financial Highlights
Salik showed healthy financial growth for the first semester of 2024. It recorded 238.5 million revenue-generating trips to post a 4.9% year-over-year increase. These trip increases ultimately translated into total revenues of $299.7 million, which is a 5.6% increase in year-over-year total revenues. Revenues from toll usage, constituting 87.1% of total revenues, increased by 4.9% year over year to reach $259.8 million.
EBITDA for H1 2024 stood at $201.2 million, 6.5 percent higher than a year earlier. Salik Company has also reported a profit before tax of $163.1 million, recording an increase of 9.2 percent year on year. The Board of Directors approved an interim dividend of $148.4 million, equivalent to 7.263 fils per share, underpinned by such strong financial performance, which is expected to be paid on September 5, 2024.
Strategic Developments
Mattar Al Tayer, Chairman of the Board, said that he was pleased by the strong performance shown by the Company and the continued increase in revenues. He mentioned that Salik performance was in line with its strategy to become a global leader in the mobility solutions industry. He further stated that the company remains committed to strategic initiatives that would build on their core business of tolling while diversifying revenues.
Notably, Salik is on course to expand its tolling infrastructure by adding two new toll gates in Dubai, set to be operational by November 2024. Moreover, the company further diversified its offerings with a new partnership related to parking solutions with Emaar Malls back in July 2024.
Business Resilience and Market Position
According to Ibrahim Sultan Al Haddad, CEO of Salik, the firm’s outstanding performance in Q2 2024 demonstrates the strength and resilience of its business model and commitment to enhancing mobility within Dubai. He further explained that the increase in the number of revenue-generating trips and active accounts was directly due to strategic efforts by the Company to meet the rapidly growing demand for efficient solutions to challenges in transportation.
As the city of Dubai further consolidates itself as an international tourist destination, with more and more international visitors, new residents, and businesses coming to the area, Salik is proud to help with the accessibility of the city. It is this contribution to attaining the dreams of Dubai that propels the firm’s mission of efficiently offering innovative mobility solutions.
In summary, Salik’s half-year 2024 financial results have improved steeply in revenues and profits. With such strategic expansions and collaborations, the firm is well-placed to further continue its growth momentum and continue to play its pivotal role in Dubai’s transport landscape.
