STOCK Salik tollgate Dubai
And they keep passing through - Salik's toll-gates in Dubai have been humming with activity as rides return to full blown activity. Image Credit: Bloomberg

Dubai: Salik's on a roll. Literally.

Dubai's road toll operator has just recorded the highest quarterly toll usage revenue for the first three months of 2023 since the start of operations. The 8 per cent gain helped with pulling in a record Dh454 million and contributing 87 per cent to the total revenue.

The revenue-generating trips of 113.6 million have thus exceeded 'pre-pandemic peak level, thanks to a complete reversion to business-as-usual economic and tourist activity and mobility'.

Red More

That in turn delivered a 'robust' net profit and free cash flow of Dh275 million and Dh325 million, respectively. The profit, though, has come in lower than a year ago. Even on a quarter-on-quarterbasis, there is a dip, which Salik says was mainly from the 'increase in finance costs and the absence of the liability write-back'.

Even with the drop, the margin on the latest net profit remained at a sizeable 52.9 per cent.

As a key player in Dubai's economy, Salik intends to persist in collaborating with stakeholders to establish fresh opportunities for the Emirate of Dubai’s residents and visitors

- Mattar Al Tayer, Chairman of Salik

"Salik achieved remarkable profitability in the first quarter of 2023, with an impressive EBITDA margin of 66.8 per cent, reflecting our commitment to unlock greater value for our shareholders," said Ibrahim Sultan Al Haddad, CEO.

Salik revenues for the period were Dh520 million, up from Dh488 million a year ago.

Fines net a hefty amount

In these three months, fines and penalties helped bulk up Salik revenues to Dh55.3 million, from Dh54.2 million. This is 'broadly in line with growth in the number of violations, net of violation dismissals (631,000 in Q1-2023 compared to 620,000 a year earlier). (The number of net violations remained mostly unchanged as a fraction of net toll traffic, and revenue from fines and penalties contributed about 11 per cent to total revenue.)

The number of vehicles registered for Salik was higher by 6.9 per cent year-on-year and 5.5 per cent from the last December quarter to total 3.9 million. This reflects 'Dubai’s ongoing successful efforts to attract tourists and talent'.

Registered active accounts increased 4.2 per cent year-on-year to 2.1 million.