Salik Reports AED 751.6 Million Revenue Growth In Q1 2025 Driven By Tolling Business Expansion

Salik Company, the sole operator of toll gates in Dubai, reported its financial outcomes for the first quarter of 2025. The company saw a 33.7% year-on-year increase in total revenue, reaching AED751.6 million. EBITDA rose by 37.9% to AED519.6 million during this period. This growth was driven by the introduction of variable pricing and two new toll gates launched in November 2024.

The EBITDA margin for Q1 2025 improved to 69.1%, up from 67.1% in the same quarter last year, showing a 210 basis point increase. This improvement was supported by robust revenue growth and also surpassed the FY24 margin of 68.9%. Salik's net profit before taxes reached AED407.2 million, marking a significant 33.6% rise compared to the previous year.

Mattar Al Tayer, Chairman of Salik’s Board of Directors, highlighted the company's exceptional performance as a reflection of its commitment to delivering long-term value to shareholders and its ambition to lead globally in smart mobility solutions. He credited Dubai's economic growth, under visionary leadership, as a key factor in sustaining this positive momentum and establishing a foundation for future growth.

Al Tayer expressed confidence in achieving an annual revenue growth between 28% and 29%. He mentioned plans to diversify operations beyond Dubai and explore new partnerships aimed at enhancing customer experiences, which are expected to boost both short- and long-term profits.

Ibrahim Sultan Al Haddad, CEO of Salik, noted that the company started 2025 with strong momentum due to its thriving core tolling business. The opening of two new toll gates at the end of 2024 played a crucial role in this success. Additionally, Salik maintained progress in ancillary revenue streams through partnerships with Dubai Mall and Parkonic parking services.

Chargeable Trips and Ancillary Revenue

Total chargeable trips reached 158 million in Q1 2025, benefiting from new variable pricing strategies. This contributed significantly to over 30% growth in total revenue for the period.

The parking partnerships with Emaar Malls and Parkonic generated AED2.8 million in revenue during Q1 2025, indicating good user traction.

Salik's strategic initiatives and expansion plans are poised to sustain its growth trajectory while enhancing customer satisfaction through innovative mobility solutions.

With inputs from WAM