Salik, listed on the Dubai Stock Exchange, announced on Wednesday the company’s financial results for the first three and nine months ending September 30.

During the first nine months of 2024, the number of revenue-generating trips reached 355.6 million trips, an increase of 5.1 percent year-on-year, recording record total revenues of AED 1.64 billion.

Revenues from toll fees, which account for 86.7 percent of total revenues, also increased by 5.1 percent year-on-year to AED 1.42 billion during the first nine months of 2024, and increased by 5.7 percent year-on-year to AED 468.4 million in the third quarter of the year.

During the first nine months of 2024, Salik’s earnings before financing costs, taxes, depreciation and amortization amounted to AED 1.115 billion, an increase of 8.9 percent year-on-year, while profits before tax amounted to AED 903.3 million, an increase of 12.5 percent year-on-year, while net profit after tax for the same period increased to AED 822.0 million, and profits after tax in the third quarter increased by 8.8 percent year-on-year to reach AED 277.3 million.

Pre-tax profits in the third quarter increased by 19.6 percent year-on-year to reach AED 304.7 million.

Mattar Al Tayer, Chairman of Salik, said: “The company has achieved strong performance during the first nine months of 2024, which reflects the flexibility of our business model and our commitment to meeting the growing demand for efficient mobility solutions in Dubai. The company also achieved success in the third quarter after officially announcing the activation of the partnership with Emaar to provide technical solutions for parking in Dubai Mall, a pioneering initiative that contributes to diversifying the revenue base and improving financial performance. On November 24, the company will start operating two new toll gates at the Business Bay and South Safa crossings, in line with the comprehensive strategic plan of the Roads and Transport Authority aimed at developing and integrating road networks and facilities, mass transit lines and services, road and transport technical systems, and implementing policies to improve the smooth flow of traffic on the road network in the Emirate of Dubai, and enhance Dubai’s position as a leading global destination.”

“We are pleased to deliver strong results for the first nine months ending September 30, 2024, supported by a strong performance in Q3, where we saw a significant growth in revenue-generating trips of 5.7 per cent year-on-year, with very strong profitability. With the rollout of our new parking solutions at The Dubai Mall and the two new toll gates set to go live on November 24, 2024, we are optimistic about the positive economic trends supporting our growth in Dubai. Accordingly, we are pleased to confirm our recently updated business outlook for FY24, where we expect revenues to grow by 7-8 per cent compared to FY23, especially since Q4 is typically Salik’s strongest quarter. We also expect the growth momentum to continue into next year, with revenue-generating trips increasing by 24-25 per cent in FY25, including the contribution of trips from the two new gates,” said Ibrahim Sultan Al Haddad, CEO of Salik.

Salik achieved free cash flows of AED 1.054 billion during the nine months of the year, an increase of 1.3 percent year-on-year, with a free cash flow margin of 64.3 percent.

Free cash flow in the third quarter amounted to AED 370.3 million, an increase of 3.2 percent year-on-year, with a free cash flow margin of 67.8 percent.

This represents a decrease in free cash flow margin of 310 basis points compared to the first nine months of the previous year, and approximately 270 basis points compared to the third quarter of 2023, mainly due to an increase in intangible assets related to parking management solutions.

Below are the most important financial data of Salik:

  • Salik revenues amount to AED 1.64 billion during the first nine months of 2024, an increase of 6.2 percent year-on-year.
  • AED 546 million in third-quarter revenues, up 7.3 percent year-on-year, supported by Dubai’s strong macroeconomic growth and its ability to attract tourists.
  • 356 million total revenue-generating trips during the first nine months of 2024, an increase of 5.1 percent year-on-year.
  • 117 million trips in the third quarter, up 5.7 percent year-over-year, the highest number recorded for a third quarter since the company was founded.
  • The number of active registered accounts reached approximately 2.5 million by the end of September 2024; an increase of 7.1 percent year-on-year, and the number of registered vehicles increased by 8.7 percent year-on-year to reach 4.3 million vehicles.
  • AED 903 million in pre-tax profits during the first nine months, a growth rate of 12.5 percent.
  • 305 million dirhams in third quarter profits, with a growth rate of 19.6 percent.
  • AED 820 million net profit for the first nine months after deducting the 9% corporate tax, a growth rate of 2.4% on an annual basis.
  • AED 277 million net profit after deducting corporate tax, a growth rate of 8.8 percent on an annual basis.
  • The company confirms its aspirations for the fiscal year 2024 unchanged, with the number of revenue-generating flights expected to increase by 7-8 percent in 202