The Board of Administrators of Salik Corporate PJSC (“Salik” or the “Company”), Dubai’s unique toll gate operator, chaired by means of His Excellency Mattar Al Tayer, Chairman of the Board, lately pronounces the Corporate’s monetary effects for the three-month duration ended March 31, 2024 (“Q1 2024”).
Salik persisted in order sturdy top-line efficiency within the first quarter of 2024, with 122.8 million revenue-generating journeys and overall profit of AED 562 million, expanding by means of 8.1% YoY which is the easiest Q1 Income-Producing Journeys Since Inception. Toll utilization profit, which represents 87.4% of overall profit, additionally greater 8.1% YoY to AED 491 million, supported by means of persisted sturdy enlargement in tourism and residency, with Dubai extra a beautiful vacation spot each for guests and pristine citizens relocating to the town.
Commenting at the effects, His Excellency Mattar Al Tayer, Chairman of the Board of Administrators of Salik, stated: “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, Leading Govt 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 enlargement in revenue-generating journeys in Q1 2024, achieving 122.8 million
The full choice of journeys, together with discounted journeys, made via Salik’s 8 toll gates grew by means of 6.2% YoY within the first quarter, pushed by means of Dubai’s persisted appeal to vacationers and business-as-usual business actions. In consequence, revenue-generating journeys reached 122.8 million, up 8.1% YoY, the easiest first quarter revenue-generating journeys since inception and in-line with the file efficiency all over the fourth quarter 2023.
All the way through the primary quarter of 2024, the Al Maktoum Bridge gate noticed the choice of revenue-generating journeys (aside from paid taxi journeys) building up 49.0% YoY, because of the continuing closure of the within reach Floating Bridge and vacation of visitors during the gate. Al Garhoud Bridge, in a similar way, noticed the choice of revenue-generating journeys (aside from paid taxi journeys) building up 9.1% YoY. Apart from each Al Maktoum and Al Garhoud Bridges, Salik’s revenue-generating journeys greater 5.3% YoY within the first quarter. Enlargement remained sturdy throughout a number of gates within the first quarter, with Jebel Ali sight double digit enlargement (+c.12%), and alternative gates rising within the high-single digit space, together with Airport Tunnel and Al Mamzar North (+c.8%).
Million
Q1
2024
Q1
2023
% Δ
YoY
This fall
2023
% Δ
QoQ
General journeys(1)
156.0
146.9
6.2%
156.4
-0.3%
Discounted journeys(2)
31.2
31.7
-1.5%
31.9
-2.3%
% of overall journeys
20.0%
21.5%
-1.6%
20.4%
-0.4%
Web toll visitors(3)
124.8
115.2
8.3%
124.5
0.2%
% of overall journeys
80.0%
78.5%
1.6%
79.6%
0.4%
Income-generating journeys(4)
122.8
113.6
8.1%
123.2
-0.2%
% of web toll visitors
98.4%
98.5%
-0.2%
98.9%
-0.5%
% of overall journeys
78.7%
77.3%
1.4%
78.7%
–
(1) General car journeys via Salik toll gates
(2) Discounted journeys come with taxis with out passengers, Al Mamzar and Al Maktoum gates loose future and reductions, automobiles released by means of regulation, and a couple of violations and alternative. A couple of violations the following drivers that again and again power during the toll gates with out paying in 24 hours. On this case, the nice is paid handiest as soon as
(3) Web toll visitors is overall journeys minus discounted journeys
(4) Income-generating journeys is web toll visitors minus fines & consequences and unreconciled journeys. Income-generating journeys is the motive force for Salik’s toll utilization charges profit, which accounts for almost all of Salik’s profit
Enlargement in energetic accounts exceeds 16% to pristine file lofty, with registered automobiles expanding by means of 9.2% YoY to 4.1 million
Registered energetic accounts greater 16.5% YoY to roughly 2.5 million from roughly 2.1 million in Q1 2023, with tag activations achieving c.242,000 tags within the first quarter, a virtually 13% YoY building up. As well as, the choice of automobiles registered with Salik within the first quarter greater 9.2% YoY, reflecting the Govt of Dubai’s ongoing good fortune in increasing the financial system and making sure the Emirate rest a key vacation spot for tourism and pristine citizens.
Salik persisted to trade in tariff exemptions to automobiles impaired by means of charities, colleges, crowd of resolution, ambulances, and alternative folk services and products. The choice of free-of-charge journeys made by means of released automobiles via Salik’s 8 toll gates greater 5.1% YoY to c. 2.1 million within the first quarter of 2024. Enlargement was once principally pushed by means of an building up within the choice of registered released automobiles which grew 10% YoY to succeed in 53,819 automobiles by means of the top of the quarter.
Monetary Highlights Endured sturdy efficiency drives profit to AED 562 million in Q1, up 8.1% YoY
Toll utilization charges: profit persisted to extend all over the primary quarter of 2024, supported by means of the influx of holiday makers and greater motion of people throughout Dubai. In consequence, toll utilization charge revenues greater 8.1% YoY to AED 491 million within the first quarter of 2024.
Fines: profit from fines greater by means of 6.4% YoY to AED 59 million, additionally up 8.6% as opposed to This fall 2023. The choice of web violations (authorized minus disregarded violations) grew 8.2% YoY in Q1 2024, having reached 683,000. Web violations all over the primary quarter represented 0.5% of web toll visitors, a marginal short at the fourth quarter, with profit from fines contributing 10.5% to overall profit.
Tag activation charges: grew strongly within the first quarter, with profit from tag activation charges expanding 13.6% YoY to AED 10 million. Tag activation charges contributed 1.7% of overall revenues within the quarter.
Salik maintained sturdy profitability within the first quarter, with EBITDA up 8.4% YoY
Salik generated EBITDA of AED 377 million within the first quarter of 2024, up 8.4% YoY, from AED 348 million within the prior month. EBITDA margin reached 67.1% within the first quarter, in comparison to a margin of 66.8% all over the primary quarter of 2023 and 65.0% all over the fourth quarter of 2023.
Salik accomplished a enlargement in web benefit ahead of taxes of 10.9%, achieving AED 304.5 million all over the primary quarter of 2024. In spite of the implementation of the 9% company tax, Salik maintained a enlargement of 0.7% in its web income next tax to succeed in a web benefit of AED 277 million.
Abstract of commentary of benefit or loss
AED million
Q1
2024
Q1
2023
%
Δ YoY
This fall
2023
% Δ QoQ
Income
562
520
8.1%
563
-0.2%
Toll utilization charges
491
454
8.1%
493
-0.4%
Fines
59
55
6.4%
54
8.6%
Tag activation charges
10
9
13.6%
14
-29.1%
Alternative profit
2.3
1.9
17.1%
2.1
8.2%
EBITDA(1)
377
348
8.4%
366
2.9%
EBITDA margin
67.1%
66.8%
0.2%
65.0%
2.0%
Finance prices, web
(51)
(52)
-1.4%
(50)
2.6%
Benefit ahead of tax
305
275
10.7%
295
3.2%
Source of revenue tax
27
–
–
–
–
Benefit for the duration
277
275
0.7%
295
-6.1%
Benefit margin
49.3%
52.9%
-3.6%
50.6%
-1.2%
Income in keeping with percentage (AED)
0.037
0.037
0.7%
0.038
-3.5%
(1) EBITDA is benefit for the duration, aside from the have an effect on of finance value, taxation, finance source of revenue, and depreciation and amortization bills
Steadiness sheet rest forged, with web debt/EBITDA with ease inside Corporate’s goal ratio
Abstract of economic place
ED million
31 Mar
2024
31 Dec 2023
% Δ
YTD
General property, together with:
5,533
5,224
5.9%
Money and money equivalents
725
266
172.3%
Shorten Time period Vault with Warehouse(1)
600
750
-20.0%
General liabilities, together with:
4,593
4,561
0.7%
Borrowings
3,990
3,989
–
Word liabilities(2))
358
353
1.4%
General fairness
940
663
41.9%
Web debt(3)
3,282
3,742
-12.3%
Web running capital steadiness(4)
(200)
(192)
3.9%
(1) Constitute Mounted cupboard with fresh adulthood of three to twelve months.
(2) Word liabilities is the sum of fresh and non-current balances paid in exit by means of shoppers when it comes to recharges and too-ups and tag activation charges
(3) Web debt is overall borrowings minus money and money equivalents minus scale down time period cupboard
(4) Web running capital is the steadiness of inventories plus business and alternative receivables plus dues from indistinguishable events plus agreement property minus business and alternative payables, minus because of a indistinguishable celebration minus provision for taxation minus fresh portion of agreement liabilities and rent liabilities.
Cast loose money stream of AED 354 million, with a margin of 62.9%
Salik generated loose money stream of AED 354 million within the first quarter, with a loose money stream margin of 62.9%, a c.40-basis level development as opposed to 62.5% within the prior month.
Abstract of money stream
AED million
Q1 2024
Q1 2023
% Δ
YoY
This fall 2023
% Δ QoQ
Working money stream ahead of adjustments in running capital
387
355
9.0%
378
2.5%
Adjustments in running capital
(33)
(30)
11.6%
31
-135.7%
Web money stream from working actions
354
325
8.8%
409
-13.5%
Web money generated from / (impaired in) making an investment actions
170
4
–
(249)
-168.4%
Web money impaired in financing actions
(65)
(55)
18.7%
(61)
8.0%
Isolated money stream(1)
354
325
8.8%
409
-13.5%
Isolated money stream margin(2)
62.9%
62.5%
0.7%
72.6%
-9.7%
(1) Isolated money stream is web money flows from working actions much less purchases of constituent and gear plus proceeds from the sale of constituent and gear
(2) Isolated money stream margin is loose money stream divided by means of profit
Salik maintains a rising and sure have an effect on at the family
Salik continues to prioritize making an investment in its human assets and upholds its constancy to variety and inclusivity. Salik expanded its full-time personnel by means of 27% YoY, from 33 in March 2023, to 42 group of workers in March 2024, with a be on one?s feet within the choice of nationalities represented from 9 to 13. Salik continues to advance on Emiratization, reaching a degree of over 30% by means of the top of the quarter.
Company Technique Replace Salik’s strategic evolution for changing into an international chief; two pristine gates anticipated in 2024
Salik lately introduced its ambition to develop into an international chief in offering sustainable and shrewd mobility answers by means of development on its experience within the tolling operate and on its sturdy ESG credentials, while specializing in two spare pillars to spur enlargement and resilience by means of diversifying the operate. Those come with: i) attaining sustainable enlargement and ii) foundation itself as a future-proof corporate.
Salik is already making just right advance on its up to date technique, having introduced the advent of 2 pristine toll gates in Dubai. The pristine Industry Bay Crossing and Al Safa South gates are anticipated to be in operation in opposition to the top of 2024 and mark persisted advance for Salik’s core tolling operate. That is additional supplemented by means of the Corporate’s promise with Emaar Department shops to grant a continuing parking cost collections answer on the world-famous Dubai Mall, as introduced on the finish of 2023, in fold with Salik’s ambitions to assemble out its ancillary profit streams.
Salik continues to concentrate on development a portfolio of vehicle-centred mobility services and products, together with enriching choices which might be payable at once via Salik accounts, along alternative ancillary profit streams, together with promoting and the prospective monetisation of information with mobility avid gamers. Salik additionally plans to ascertain itself as a future-proof corporate by means of making sure an effective treasury control and investment gadget is in playground, while creating inside functions to backup the evolving operate style and make stronger general resilience and operational excellence. This might be additional supported by means of development Salik’s emblem id and keeping up sturdy operate ethics.
Salik rest dedicated to sustainable operate practices and strives to be an ESG steward, lowering its environmental have an effect on, contributing to the happiness and protection of its communities, and upholding world-class company governance requirements.
Industry Outlook
As communicated previous within the month, complete month 2024 revenue-generating journeys are anticipated to extend within the space of 4-6% YoY, a continuation of the sturdy enlargement momentum distinguishable in 2023, with a strong EBITDA margin within the space of 65-66%. Even if it’s nonetheless early within the monetary month, Salik’s control are aware of the continuing closure of the Floating Bridge, which has greater visitors during the Al Maktoum Bridge toll gate and are assessing the prospective sure have an effect on on complete month financials must the bridge stay closed for longer than initially anticipated.
The Corporate expects to replace its monetary steering and outlook on the future of the part month effects when analysis of the monetary have an effect on of the pristine toll gates may also be extra complicated.
On April 3, 2024, Salik introduced the aid of its annual concession charges which might be because of the Roads and Shipping Authority (RTA). Through which the Concession Charges had been adjusted next the yearly inflation fee for the Emirate of Dubai was once introduced by means of the Dubai Statistics Centre, amounting to a few.33% for complete month 2023. Subsequently, the Roads and Transportation Authority (RTA) licensed on April 1, 2024 the aid of the Concession Charges due once a year from Salik from 25% to 22.5% of the Toll utilization revenues.
The Concession Price aid is acceptable as of one April 2024, with the cheaper price construction anticipated to [positively] have an effect on Salik’s monetary efficiency from the second one quarter of 2024 onwards.
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