Image credit: WAM/Website
Salik Company PJSC, known as Dubai’s exclusive toll gate operator, has recently released its financial results for the first quarter of 2025, revealing significant growth. The company’s total revenue surged by an impressive 33.7% year-on-year, reaching Dh751.6 million.
Read – Salik signs deal with ENOC to enable smart payments at fuel stations
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showcased robust growth, increasing by 37.9% year-on-year to reach Dh519.6 million. This surge can be attributed to a thriving core tolling business, which recorded a staggering 158 million total chargeable trips, following the implementation of variable pricing and the introduction of two new toll gates in late 2024, as reported by Dubai Media Office.
Strategic Commentary
Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed enthusiasm for the company’s strong performance. He stated, “Our exceptional Q1 performance reflects a continued focus on delivering long-term value to shareholders and our ambition to become a global leader in providing smart and sustainable mobility solutions.” He attributed this success to Dubai’s robust economic growth and strategic leadership, which create a favorable environment for long-term sustainable growth.
Continuing the upward momentum from 2024, Al Tayer highlighted robust performance across both the core tolling business and ancillary revenue streams, indicating an expected revenue growth of 28-29% by year-end 2024. This will be driven further by expansion beyond Dubai and the development of new partnerships to enhance user experience and support growth.
“We have maintained progress in our ancillary revenue streams, with partnerships showing good traction in Q1,” added Ibrahim Sultan Al Haddad, CEO of Salik. He noted that the total chargeable trips climbed to 158 million, facilitating revenue growth of over 30%.
Core Tolling Business
In Q1 2025, Salik experienced a remarkable 35.1% year-on-year growth in total trips, largely attributable to two new toll gates that opened in November 2024. This noteworthy increase also benefits from Dubai’s growing appeal among tourists, an uptick in commercial activities, and ongoing strategic investments aimed at economic diversification.
- Total chargeable trips reached 158 million during the quarter. Among these, 39.3 million trips occurred during peak times (Dh6), while 107.5 million were made during off-peak hours (Dh4). Additionally, 11.2 million trips were recorded past midnight at no charge.
- The revenue from toll usage fees grew by 35.5% year-on-year, totaling Dh665.6 million, thanks to the new pricing structure and additional toll gates.
- Fines also saw a rise, up 16.2% year-on-year to Dh68.4 million, with net violations reaching approximately 786,000.
- Tag activation fees increased by 17.4% to Dh11.5 million, contributing 1.5% to the total Q1 revenue.
Ancillary Revenue Streams
- Salik’s partnerships with Emaar Malls and Parkonic generated revenue of Dh2.8 million, with Dubai Mall showing strong engagement rates.
- The collaboration with Liva Group contributed Dh0.5 million through improved vehicle insurance renewal services.
- Salik continues to explore and expand its ancillary revenue streams, building on 2024 milestones such as e-wallet integration at over 100 UAE parking locations and new mobility solutions.
Financial Performance
Salik recorded strong profitability in Q1 2025, with EBITDA rising by 37.9% year-on-year, showcasing a robust balance sheet and financial health.
- EBITDA for the quarter was Dh519.6 million, an increase from Dh376.9 million in Q1 2024, with an EBITDA margin now at 69.1% compared to 67.1% from the previous year.
- Net profit before tax reached Dh407.2 million, a growth of 33.6% year-on-year.
- Net profit after tax stood at Dh370.6 million, also increasing by 33.7% year-on-year.
Balance Sheet and Cash Flow
- Salik’s net debt as of the first quarter was Dh4,648.8 million, showing a decrease of 10.6% from the end of 2024. Leverage ratios were maintained at 2.7 times Net Debt to EBITDA.
- Free cash flow surged to Dh626.7 million in Q1 2025, reflecting a remarkable year-on-year increase of 77.8%, resulting in a margin of 83.4%.
Strategy and Expansion
Implementation of Variable Pricing
Beginning on January 31, 2025, Salik introduced variable pricing as mandated by the Roads and Transport Authority (RTA), aimed at improving traffic flow and operational efficiency.
New Toll Gates
The Business Bay and Al Safa South toll gates commenced operations in November 2024, with a combined valuation of Dh2.734 billion, payable over six years.
Ancillary Partnerships and Innovations
- Salik introduced barrier-free payment for parking at Dubai Mall on July 1, 2024.
- A five-year partnership with Parkonic aims to integrate e-wallet functionality across more than 107 locations.
- Collaboration with Liva Insurance simplifies vehicle insurance renewals for customers.
- Salik has begun offering customized tags, allowing corporate clients to personalize their service.
Additional Milestones
- The memorandum of understanding with ENOC integrates smart payment solutions for fuel and services using Salik’s e-wallet.
- Workforce initiatives show a 29% increase in headcount year-on-year, with Emiratization reaching 29.6% and female workforce representation at 20.4%.
Business Outlook
Looking ahead, Salik is projecting its total revenue guidance for FY25 remains unchanged, with expectations of a 28-29% growth year-on-year. Excluding the new toll gates, growth is projected at 4-5%, while the EBITDA margin is anticipated to be within the 68-69% range.
