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Home Business Corporate Salik Reports Q1 2024 Revenues of AED 562 million, Up 8.1% YoY

2024-05-14 06:56   Services   Abu Dhabi   9 views Reference: 157

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The Board of Directors of Salik Company PJSC (“Salik” or the “Company”), Dubai’s exclusive toll gate operator, chaired by His Excellency Mattar Al Tayer, Chairman of the Board, today announces the Company’s financial results for the three-month period ended March 31, 2024 (“Q1 2024”).

 

Salik continued to deliver strong top-line performance in the first quarter of 2024, with 122.8 million revenue-generating trips and total revenue of AED 562 million, increasing by 8.1% YoY which is the highest Q1 Revenue-Generating Trips Since Inception. Toll usage revenue, which represents 87.4% of total revenue, also increased 8.1% YoY to AED 491 million, supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination both for visitors and new residents relocating to the city.

 

Commenting on the results, His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said: “Salik has delivered another strong quarter at the beginning of 2024, a continuation of the momentum from record top-line performance in 2023. The results achieved in the period are a testament to our strategic vision and commitment to delivering long-term value to our shareholders, as well as to the positive macroeconomic environment in the UAE. GDP growth coupled with strong tourism inflow are evidence that the Government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit.”

 

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: “We are very pleased to have started the year strongly, with revenue-generating trips increasing by over 8% year-on-year, supporting our ambition to become a global leader in mobility solutions. We continue to thrive in our core tolling business and remain focused on diversifying our portfolio through the expansion of ancillary revenue streams. The first quarter marked a period of strategic progress, having announced an expansion of our toll gate network through the addition of two new gates in Dubai, which we plan to be operational by November of this year. This follows the diversification into parking management solutions through our partnership with Emaar Malls, as announced at the end of 2023. Both strategic milestones are exciting developments for our business, placing Salik in a position of strength going forward.”

Mobility Highlights

 

 Salik posts 8.1% YoY growth in revenue-generating trips in Q1 2024, reaching 122.8 million

 

The total number of trips, including discounted trips, made through Salik’s eight toll gates grew by 6.2% YoY in the first quarter, driven by Dubai’s continued attraction to tourists and business-as-usual commercial activities. As a result, revenue-generating trips reached 122.8 million, up 8.1% YoY, the highest first quarter revenue-generating trips since inception and in-line with the record performance during the fourth quarter 2023.

 

During the first quarter of 2024, the Al Maktoum Bridge gate saw the number of revenue-generating trips (excluding paid taxi trips) increase 49.0% YoY, due to the ongoing closure of the nearby Floating Bridge and diversion of traffic through the gate. Al Garhoud Bridge, similarly, saw the number of revenue-generating trips (excluding paid taxi trips) increase 9.1% YoY. Excluding both Al Maktoum and Al Garhoud Bridges, Salik’s revenue-generating trips increased 5.3% YoY in the first quarter. Growth remained strong across several gates in the first quarter, with Jebel Ali seeing double digit growth (+c.12%), and other gates growing in the high-single digit range, including Airport Tunnel and Al Mamzar North (+c.8%).