Salik Firm PJSC (“Salik” or the “Firm”), Dubai’s unique toll gate operator, at the moment introduced its monetary outcomes for the three-month and year-ended December 31, 2024 (“This fall 2024” and “FY 2024”). Whole Income for the complete 12 months 2024 grew by 8.7% YoY to achieve AED 2.3 billion whereas fourth quarter income grew 15.6% YoY amounting to AED 651 million. EBITDA for the complete 12 months reached AED 1.6 billion, a 13.6% YoY development. When it comes to operations, whole income producing journeys recorded 498.1 million, rising by 8.0% YoY in the back of the launch of the 2 new Salik gates.
His Excellency Mattar Al Tayer, Chairman of the Board of Administrators of Salik, expressed his delight over the corporate’s monetary and operational outcomes and mentioned: “Salik has reported a really sturdy 12 months, with wholesome income development and file profitability efficiency. Our monetary outcomes for 2024 are a testomony to the energy of our enterprise mannequin and technique, and our dedication to delivering long-term worth to shareholders. Throughout the previous 12 months, Salik proudly reached important strategic milestones, having launched two new toll gates throughout the core tolling enterprise and established a number of partnerships. These strategic partnerships assist our ambition to change into a worldwide chief in offering sustainable and good mobility options. In addition they replicate our dedication to delivering revolutionary options that improve street person expertise, develop our ancillary income streams and helps monetary returns.” His Excellency additionally famous that, “With this development, we see promising alternatives to proceed to extend and diversify our revenues, improve our monetary returns, and contributing to the long-term sustainability of our enterprise. We look ahead to attaining extra operational, monetary and strategic milestones in 2025”.
Ibrahim Sultan Al Haddad, Chief Government Officer of Salik, commented: “Our 2024 outcomes had been bolstered by significantly sturdy efficiency within the fourth quarter, with revenue-generating journeys growing 8% year-on-year, on the high finish of our guided vary. Development in whole income exceeded steering, up by 8.7% year-on-year, together with very sturdy profitability, as our EBITDA margin reached 68.9%. We’re optimistic in regards to the optimistic traits in Dubai’s economic system, which align with and assist our development and imaginative and prescient. We’re happy to revise our steering for FY25 upwards, projecting income development of 28-29% in comparison with FY24, alongside an EBITDA margin of 68-69%. Our revised steering consists of contributions from the implementation of variable pricing and our two new gates, each of which have demonstrated the anticipated efficiency of their preliminary weeks of operation. I want to reaffirm our confidence in increasing our ancillary income streams in 2025, following the profitable collaboration with Emaar Malls to supply an revolutionary, barrier-free parking cost resolution. We now have additional broadened our service providing in partnership with Parkonic to combine Salik’s e-wallet system throughout 107 parking places within the UAE, along with our pioneering collaboration with Liva Group to streamline the automobile insurance coverage renewal course of.”
Continued sturdy efficiency drives income to AED 2,291.9 million in FY 2024, up 8.7% year-on-year
The whole variety of journeys, together with discounted journeys, made by way of Salik’s toll gates grew 7.6% YoY in FY24, pushed by Dubai’s continued attraction of vacationers and development in business actions.
Income-generating journeys reached 498.1 million within the 12 months, up 8.0% YoY, with income producing journeys totaling 142.6 million within the fourth quarter, up 15.8% YoY, supported by graduation of operations of two new toll gates launched on the finish of November 2024. Development remained sturdy throughout a number of established gates within the fourth quarter, with Al Garhoud Bridge seeing sturdy double-digit development 15.9%, and Jebel Ali 8.5% and Airport Tunnel 5.2% seeing mid-high single digit development.
Toll utilization charges: income in the course of the 12 months elevated by 8.0% YoY to AED 1,992.5 million. The sturdy development was supported by the rising influx of vacationers and elevated motion of people throughout Dubai, with fourth-quarter toll utilization payment revenues growing 15.7% YoY to AED 570.2 million pushed by the introduction of the brand new gates.
Fines: income from fines elevated 9.3% YoY to AED 236.9 million within the 12 months, with the fourth quarter up 14.5% YoY to AED 62.1 million. The variety of web violations (accepted minus dismissed violations) grew 5.4% YoY in This fall 2024, reaching c.730,000. Web violations in the course of the fourth quarter represented 0.4% of web toll site visitors, with income from fines contributing 10.3% to whole income in FY24.
Tag activation charges: grew strongly within the 12 months, with income growing 7.0% YoY to AED 40.9 million. Tag activation charges contributed 1.8% of whole income in FY24.
Ancillary Income Streams
Whole income from parking partnership with Emaar Malls reached AED 5.8 million in FY24 having launched on 1 July 2024, pushed by a excessive variety of transactions. The barrier-free parking cost resolution processed 100% seamless transactions, according to Salik’s ambitions to ship a seamless paid parking system to boost the visitor expertise, enhance parking availability and streamline the cost course of, with 100% of the transactions being autopayment.
Salik reaffirms its confidence in increasing its ancillary income streams in 2025 following its profitable collaboration with Emaar Malls, its latest partnership with Parkonic to combine Salik’s e-wallet system throughout 107 places within the UAE and its collaboration with Liva Group to streamline the automobile insurance coverage renewal course of. These partnerships displays Salik’s dedication to delivering revolutionary options that improve person expertise and strengthens Salik’s place to extend its revenues and diversify its revenue streams, each of which is able to contribute to the long-term sustainability of the enterprise.
Monetary Efficiency
Sturdy profitability in FY24, with EBITDA growing 13.6% year-on-year, wholesome steadiness sheet in place
Salik generated EBITDA of AED 1,579.1 million in FY24, up 13.6% YoY from AED 1,390.1 million in FY23, pushed by sturdy EBITDA development within the fourth quarter, with EBITDA rising 26.7% YoY to AED 464.1 million, Salik’s highest quarterly EBITDA efficiency since inception.
EBITDA margin reached 68.9% in FY24, in comparison with 65.9% in FY23, representing a c.300 bps YoY growth. Margins expanded considerably within the fourth quarter to 71.3%, c.630bps YoY growth in comparison with 65.0% in This fall 2023 and 69.0% in Q3 2024.
Salik’s web revenue earlier than taxes totaled AED 1,279.7 million in FY24, marking a powerful 16.6% YoY improve, with fourth quarter revenue earlier than tax growing 27.5% YoY to AED 376.4 million.
Salik generated web revenue after taxes of AED 1,164.5 million in FY24, a 6.1% YoY improve, with fourth quarter revenue after tax reaching AED 342.5 million, up 16.0% in comparison with This fall 2023, regardless of the introduction of the 9% company tax within the UAE in 2024.
In gentle of the sturdy 12 months efficiency, the Board of Administrators suggest a dividend of AED 619.8 million to be paid throughout H1 2025 (equal to eight.2645 Fils per share). This brings whole dividends for FY24 to AED 1,164.5 million representing 100% of FY24 web revenue and a 6.1% YoY improve in comparison with FY23.
Abstract of steadiness sheet: web debt of AED 5,198.6 million, with leverage of three.29x Web Debt to EBITDA
Salik recorded a web working capital steadiness of AED -536.8 million as of December 31, 2024, equating to c.-23% as a share of annualized revenues. The numerous development in web working capital is principally as a consequence of RTA concession charges related to the toll rights payment for the brand new toll gates, along with increased provisions for the company tax launched in January 2024. As at December 31, 2024, web debt stood at AED 5,198.6 million, up from AED 3,163.3 million on the finish of September 2024, primarily because of the payable of the concessionary rights to RTA, pertaining to the 2 new toll gates. This interprets to a trailing twelve-month web debt/EBITDA ratio of three.29x, considerably under the Firm’s debt covenant of 5.0x.
Abstract of money stream: free money stream of AED 1,457.3 million, with a margin of 63.6%
Salik generated free money stream of AED 1,457.3 million in FY24, up 0.5% YoY, with a free money stream margin of 63.6%. Free money stream reached AED 402.6 million within the fourth quarter, -1.5% year-on-year, however up 8.7% in comparison with the Q3 2024 interval, with a free money stream margin of 61.8%. The free money stream margin declined by c.510 bps year-on-year, primarily regarding the funds of the concessionary rights to RTA, pertaining to the 2 new toll gates.
Changing into a worldwide chief in good and sustainable mobility options
Core Tolling Enterprise
Implementation of variable pricing: As instructed by the RTA, Salik launched variable pricing on January 31, 2025. The variable pricing goals to boost site visitors stream throughout Dubai’s street networks and enhance transportation effectivity throughout the town. Primarily based on preliminary projections, the brand new pricing mannequin is anticipated to generate extra income of AED 60-110 million on an annual foundation.
Valuation of two new gates: Salik continued to make progress on its up to date technique all through 2024, having launched two new toll gates in Dubai. The Enterprise Bay and Al Safa South gates have been in operation since November 24, 2024. This follows the mixed valuation of the 2 new toll gates at a complete of AED 2.734 billion, with the Enterprise Bay Gate valued at AED 2.265 billion and the Al Safa South Gate valued at AED 469 million to be paid in two equal instalments, each six months over a six-year interval.
Ancillary Income Streams
Salik collaborates with Parkonic, one of many largest personal parking operator within the UAE: The collaboration goals to boost parking cost experiences throughout the UAE by integrating Salik’s superior e-Pockets system. The partnership relies on a five-year contract, throughout which Parkonic will combine Salik’s e-Pockets into the 107+ places it operates and any future places it could function within the UAE. The settlement additionally marks the primary time Salik has expanded its service providing exterior of the Emirate of Dubai.
Personalized Salik tags initiative: Salik is within the strategy of launching an revolutionary Personalized Tags initiative, permitting company prospects to personalize Salik tags with distinctive designs and messages. This initiative displays Salik’s dedication to enhancing buyer expertise and embracing innovation.
New LIVA motor insurance coverage partnership: Salik partnered with LIVA (previously RSA), a number one multi-line insurer within the GCC, to supply its prospects entry to market-leading insurance coverage options. The partnership will provide one-of-a-kind bespoke insurance coverage options to drivers within the UAE, streamlining the renewal course of for larger comfort and effectivity. Salik will leverage its complete database to supply value-added providers to prospects by sending well timed renewal reminders to mitigate insurance coverage protection lapses. These notifications will embody a hyperlink directing prospects to a LIVA touchdown web page, the place the motor insurance coverage coverage will be renewed in just a few easy steps at a aggressive value.
Salik commenced seamless parking operations at Dubai Mall: This milestone marked Salik’s first barrier-free parking cost resolution, in partnerships with Emaar Malls, throughout the Trend, Grand and Cinema parking zones, began on July 1, 2024.
Different Key Achievements
Salik was assigned sturdy funding grade credit score scores by Moody’s and Fitch Scores: This milestone affirms Salik’s sturdy monetary place, operational energy, and method to enhancing transparency whereas optimizing entry to capital markets. The project of credit score scores to Salik follows the request for a public ranking by the Firm.
Salik joined the UN International Compact: In July 2024, Salik joined the United Nations International Compact, the main international initiative for company sustainability, demonstrating its dedication to moral enterprise practices and sustainable operations. By aligning with the UN International Compact’s rules, Salik goals to boost social and environmental accountability whereas contributing to the UAE’s sustainable improvement targets. The Firm will actively pursue initiatives that scale back its environmental influence, assist social progress and promote a sustainable future for the UAE.
Continued funding in human assets: In 2024 Salik expanded its full-time workforce by 20% YoY, to 48 personnel, with the variety of nationalities represented at 12. Salik continues to progress
on Emiratization, attaining a stage of 31.3% by the tip of the 12 months, a sequential enchancment vs. 30.4% in Q3 2024.
Enterprise Outlook – FY25 Steerage Revised Upwards
FY25 whole income development anticipated to extend 28-29% YoY, together with the contribution from two new toll gates
Income development: whole income development in FY25 is now anticipated to be within the vary of 28-29% year-on-year, a rise in comparison with our earlier steering of 25-26%, this consists of the influence of the 2 new gates launched in November 2024 and the implementation of variable pricing on 31 January 2025. On a normalized foundation, excluding the contribution from the 2 new gates, we proceed to anticipate whole income to extend 4-5% YoY in FY25.
EBITDA margin: is anticipated to be within the vary of 68-69% in comparison with earlier steering of 67-68%.
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