Salik Announces Record Revenue Of AED 2.1 Billion And H2 2023 Dividends

The Board of Directors of Salik Company PJSC, under the leadership of Mattar Al Tayer, Chairman of the Board, has officially approved the financial outcomes for the year concluding on 31st December 2023. Demonstrating a robust performance, Salik, Dubai's sole toll gate operator, reported a significant increase in both revenue and the number of trips made through its gates.

With a total of 461.4 million revenue-generating trips recorded in 2023, Salik achieved an unprecedented total revenue of AED2.109 billion. This marks the company's strongest full-year performance since its inception in 2007. The toll usage revenue, constituting 87.5% of the total revenue, saw an 11.7% increase year-on-year to AED1,845 million. This surge is attributed to Dubai's growing appeal as a destination for tourism and new residents.

The fourth quarter of 2023 alone witnessed an 11.1% increase in revenue-generating trips, amounting to 123.2 million, with toll usage revenue reaching AED493 million. This consistent growth underscores Dubai's strategic initiatives to bolster its economy and attract more visitors and residents.

Mattar Al Tayer highlighted the positive macroeconomic environment in the UAE and the government's efforts to expand the economy as key factors contributing to Salik's success. He also mentioned Salik's global aspirations and its strategy to diversify revenue streams beyond its core tolling business.

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, expressed optimism about the company's progress towards becoming a global leader in mobility solutions. He emphasized Salik's focus on strengthening its core business while exploring new revenue-generating opportunities, including a partnership with Emaar for barrier-free parking technology at Dubai Mall.

The total number of trips through Salik’s eight toll gates increased by 10% over the year, with a notable 8.5% year-on-year growth in the fourth quarter. The number of vehicles registered with Salik also saw an 8.3% increase from the previous year, reflecting Dubai's success in attracting tourism and new residents.

Salik reported an EBITDA of AED 366 million in the fourth quarter of 2023, marking a 5.0% increase from the previous year. The full-year EBITDA reached AED 1,390 million with margins aligning with management expectations.

In response to these strong results, the Board recommended distributing 100% of H2 2023 net profit as dividends to shareholders, amounting to AED550 million. This brings the total dividends for 2023 to AED1.098 billion, following a previous distribution of AED548 million for H1 2023 as decided on 10th August 2023.

Salik’s record performance in 2023 not only reflects its operational excellence but also underscores Dubai’s strategic vision to maintain its status as a premier destination for both tourists and new residents alike.

With inputs from WAM