Salik posts Dhs509m revenue in Q3

Mattar Al Tayer, Chairman of the Board, and the Board of Directors of Salik Company (Salik), Dubai’s exclusive tollgate operator, have approved the Company’s condensed financial results for the nine-month and three-month periods ended 30th September, 2023.

In the third quarter of 2023, Salik continued to deliver strong top-line performance, with 110.8 million revenue-generating trips and total revenue of Dhs509 million.

Toll usage revenue, which represent 87.1 per cent of total revenue, increased 14.6 per cent year-on-yaer (YoY), the highest third quarter performance since Salik commenced operations in 2007, supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination both for visitors and people relocating to the city.

Salik remains highly profitable, reporting net profit of Dhs255 million during the third quarter of 2023, up 5.3 per cent against the prior year.

Commenting on the results, Al Tayer said, “Salik’s robust performance in the third quarter of 2023 is a testament to our strategic vision and commitment to delivering long-term value to our shareholders. 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 continues to emerge as a leading tollgate operator globally, supported by a highly efficient business model and a buoyant local macroeconomic environment.”

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented, “We maintained high levels of top-line performance during the third quarter, recording 14.2 per cent growth in revenue and an EBITDA margin of 64.9 per cent. As such, we are very encouraged by year-to-date performance as well as by supportive macroeconomic indicators for the remainder of the year.

This was recently demonstrated by the number of students enrolling in private sector schools in Dubai recording its highest-ever growth since 2007, clear evidence of the city’s strong attraction to new residents. We are pleased to reiterate our full year financial guidance and expect underlying revenue-generating trips to grow 9-10 per cent compared to 2022 with an EBITDA margin in the range of 66-67% per cent” Al Haddad added, “The third quarter was also a time for passing some important business milestones, as we celebrated our first full year since our award-winning listing on Dubai Financial Market in September. We also inaugurated our new eco-friendly office in Festival Tower, in line with our commitment to reducing the Company’s carbon footprint, an exciting and important moment in our sustainability journey.”