Salik in recent weeks has confirmed additional revenue generation moves, including two additional toll-gates in Dubai later in the year. Image Credit: Bloomberg

Dubai: The Dubai toll-gate operator Salik will issue a Dh550 million payout for shareholders on the back of its second-half 2023 performance. This equates to 7.33 fils a share.

Through 2023, the DFM-listed firm had revenues of Dh2.1 billion (from Dh1.89 billion), while profit was just over Dh1 billion (against Dh1.32 billion in 2022). 

"Salik continues to emerge as a leading toll-gate operator globally," said Mattar Al Tayer, Chairman of Salik. "Our updated corporate strategy will see the diversification of our revenue streams to supplement the expansion of our core tolling business, and we look forward to updating the market on our strategic progress in due course."

For full-year 2023, the company will have paid just over Dh1 billion to shareholders. 

What Salik expects in 2024
This year, Salik is targeting its revenue-generating trips to increase in the range of 4-6% year-on-year, which would be a continuation of the 'strong growth momentum seen in 2023'.

That will in turn fore up a 'robust' EBITDA margin in the range of 65-66%.

From 8 to 10 gates

One way will be to add two more toll-gates in the city, thus taking the tally to 10 by end 2024. Last year, Salik's gates recorded a 10 per cent increase in total trips (including discounted trips). The final quarter numbers were higher 8.5 per cent.

In all, revenue-generating trips in 2023 reached 'new highs' of 461.4 million, up 11.7 per cent and 'comfortably above the pre-pandemic peak of 434.7 million in 2019'. The fourth quarter revenue-generating trips hit 123.2 million, up 11.1 per cent. (It was also higher than the previous quarterly record of 113.8 million in Q2-2023.)

During the fourth quarter of 2023, the Al Maktoum Bridge gate had the number of revenue-generating trips – excluding paid taxi trips – from a 53.6 per cent increase, which also came about from the 'ongoing closure of the Floating Bridge and diversion of traffic through the gate'.

The Al Garhoud Bridge had a 12.2 per cent increase.

"Excluding both Al Maktoum and Al Garhoud Bridges, Salik’s revenue-generating trips increased 7.9 per cent in the fourth quarter and 9.3 per cent for the year as compared to 2022.

“Salik is continuing to make good progress on delivering its long-term objectives, in line with our ambition to become a global leader in mobility solutions," said Ibrahim Sultan Al Haddad, CEO. 

|We are thriving in the tolling business and remain focused on strengthening our core business offering as we expand our footprint within Dubai. At the same time, we are committed to delivering sustainable growth, with our updated strategy purpose-built to widen the revenue generating opportunities that we pursue."

There was a newly created partnership with Emaar to provide technology solutions for barrier-free parking at The Dubai Mall.