Toll operator Salik reports net profit of Dhs275m for Q1 2023

Dubai’s toll operator Salik has announced it made a net profit of Dhs275m for Q1 2023.

It recorded the highest level of quarterly revenue-generating trips and toll usage revenue since the start of operations in 2007, at 113.6 million trips and circa Dhs454m, respectively. Toll usage revenue, which contributed 87 per cent to total revenue, increased 7.9 per cent YoY on the back of a return to business-as-usual in Dubai following the complete lifting of Covid-19 restrictions, as well as solid organic growth in commercial and tourist activity.

“Salik achieved net profit of circa Dhs275m during the quarter, with a net profit margin of 52.9 per cent,” said a disclosure by the company published by Dubai Financial Market.

Mattar Al Tayer, chairman of the Board of Directors of the company, said: “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, confirming that the company’s unwavering commitment to advancing capital market growth and supporting the emirate’s wider economic development plans was exemplified by Salik’s pivotal role in Dubai’s initial public offering program through its momentous listing last September.”

Salik Company PJSC announced today its financial results for the first quarter of 2023, reporting its highest ever quarterly toll usage revenue, reaching AED 454 million and contributing 87% to the Company’s total revenue. pic.twitter.com/O6JNdUCNE0

— Salik (@Salik_ae) May 12, 2023

Salik is on track to offer greater value to shareholders

Ibrahim Sultan Al Haddad, the company’s chief executive officer, said: “We are delighted to announce Salik’s financial and operational performance for the first quarter of 2023, following our successful listing on the Dubai Financial Market last September. The results we achieved demonstrated our ability to attain the desired level of success, driven by Dubai’s economic resilience and record usage of our toll roads. In addition, our robust business model contributed significantly to the company’s success. We achieved remarkable profitability in the first quarter of 2023, with an impressive EBITDA margin of 66.8 per cent, reflecting our commitment to deliver exceptional results for Salik and unlock greater value for our shareholders.

“We are continuing to invest in our human capital, recognising the importance of a diverse and inclusive workforce that reflects the communities we serve. We will continue to prioritise employee development and advancement as we strive to achieve our objectives and make a positive impact on the economy and society.”

The toll operator was established through the issuance of Law No (12) of 2022. It was formerly part of the Roads and Transport Authority (RTA) and has operated as Dubai’s exclusive road toll system since 2007.