Salik Q1 revenue slips on slower Dubai traffic, but profit steadies

Dubai: Dubai toll operator Salik reported Dh728.9 million in revenue for the first quarter of 2026, down 3 per cent year-on-year, as lower toll usage and softer traffic trends during March weighed on performance.

The company said the decline was linked to what it described as an “exceptional event” that affected traffic movement during the quarter, referring to the ongoing regional disputes between the US, Israel and Iran. The impact was partially offset by growth in tag activation fees and other revenue streams.

Salik’s total trips across Dubai’s toll gates fell 6.4 per cent year-on-year to 197.2 million during the quarter, while chargeable trips dropped 7.7 per cent to 145.7 million.

Despite lower traffic volumes, net profit remained broadly stable at Dh369.3 million compared to the same period last year. EBITDA, or the company’s core operating cash flow, margin improved slightly to 69.6 per cent from 69.1 per cent a year earlier. The company’s active registered accounts grew 7.5 per cent year-on-year to reach 2.8 million accounts.

Mattar Al Tayer, Chairman of the Board of Directors of Salik, said, “Q1 2026 results reflect Salik's ability to deliver resilient performance amid a challenging operational environment.”

He added: “Salik delivered strong financial performance despite operational and economic challenges, with net profit reaching Dh369.3 million and a healthy net profit margin of 50.7 per cent.”

Revenue from toll usage fees fell 6 per cent year-on-year to Dh 625.5 million, mainly due to the softer traffic environment. However, Salik said the impact was partly balanced by Dubai’s variable toll pricing system introduced in January 2025. Under the pricing model, motorists pay higher toll fees during peak hours and lower charges during off-peak periods.

Peak-hour trips increased 36.6 per cent year-on-year to 53.7 million trips during the quarter, while off-peak trips declined 29.4 per cent.

Salik’s ancillary revenue business continued to grow during the quarter. Revenue from parking payment solutions, digital wallet services and partnerships increased 147 per cent year-on-year to Dh8 million.

The company expanded its digital payment systems across Dubai International Airport through its partnership with Dubai Airports. Salik’s e-wallet services are now integrated across parking systems at Terminals 1, 2, 3 and the Cargo Mega Terminal.

Salik also announced a new partnership with Valtrans to introduce digital valet parking payments across more than 100 UAE locations starting June 2026.

Chief executive Ibrahim Sultan Al Haddad said: “Despite the slowdown in traffic volumes since the beginning of March, the business continued to demonstrate healthy underlying profitability, cash generation and disciplined financial performance.”

Salik generated free cash flow of Dh 636.5 million during the quarter, up 1.6 per cent year-on-year, while net debt fell nearly 12 per cent from the previous quarter.

The company said it will continue expanding into mobility services, including EV charging partnerships with Schneider Electric and Vcharge, as well as fuel payment trials with ENOC.

Salik further expanded this ancillary revenue stream in 2025 through a five-year partnership with Parkonic, integrating its advanced e-Wallet system across Parkonic’s nationwide portfolio, with the solution now live at 150+ of 200+ locations.

“The number of locations has witnessed substantial growth, highlighting the continued success of this partnership, which recorded significant growth in revenue,” Salik said in a statement.