14/08/2025 04:23 AST
Salik Company, Dubai's exclusive toll gate operator, has reported a record performance in the first half of 2025, with net profit after taxes rising 41.5 per cent year-on-year to Dh770.9 million.
In a move reflecting confidence in its strong financial position, the board has proposed a cash dividend of the same amount, equivalent to 10.278 fils per share and representing 100 per cent of H1 profit.
The company said in statement that total revenue for the period surged 39.5 per cent to Dh1.53 billion, supported by a 45.6 per cent year-on-year increase in the second quarter. Ebitda reached Dh1.07 billion in H1, up 44.2 per cent from a year earlier, with margins improving to 69.7 per cent. This performance was driven by the addition of two new toll gates in November 2024 and the first full quarter of variable pricing, introduced at the end of January 2025, alongside Dubai's strong economic momentum.
Salik's tolling business remained the primary growth engine, with total chargeable trips in H1 reaching 318.4 million, including 160.4 million in the second quarter - a 1.6 per cent increase from Q1 despite seasonal factors. Toll usage fee revenue rose 42.3 per cent to Dh1.36 billion in the first half, benefiting from the variable pricing structure and expanded network. Fines contributed Dh134.3 million, up 15.7 per cent, while tag activation fees increased 16.2 per cent to Dh22.9 million.
Ancillary revenue streams also gained traction, contributing Dh8.7 million in the first half. Partnerships with Emaar Malls, Parkonic, and Liva Group delivered strong results, with parking payment solutions at Dubai Mall and other locations recording higher transaction volumes. Additional initiatives, such as a collaboration with Enoc to integrate Salik payments into fuel and service stations, are expected to expand revenue diversity and enhance customer experience.
Chairman of the board Mattar Al Tayer said the results underscored the company's resilience and efficiency. "We have delivered a 39.5 per cent increase in revenue, reflecting the strength of our business model and the success of our strategy. In light of these results, we are recommending a full payout dividend of Dh770.9 million, reaffirming our commitment to delivering value to shareholders," he said.
Al Tayer added that, with ongoing growth in tourism, real estate, and infrastructure spending, Salik was upgrading its full-year 2025 guidance, now expecting revenue to grow 34-36 per cent compared with 2024, up from a previous forecast of 28-29 per cent.
CEO Ibrahim Sultan Al Haddad noted that the company achieved close to 40 per cent growth across all key financial metrics in the first half. "The performance reflects the continued strength of our core tolling business and the growing contribution of non-tolling initiatives. We have benefited from new gates, population growth, and record tourism inflows, with hotel occupancy rising to 83 per cent in the first five months of the year," he said.
Salik's free cash flow reached Dh1.11 billion in H1, up 62.4 per cent year-on-year, representing a margin of 72.8 per cent. Net debt stood at Dh4.85 billion at the end of June, with the net debt-to-Ebitda ratio improving to 2.55x, well below the debt covenant of 5.0x.
The company's outlook remains positive, with revenue growth driven by network expansion, pricing optimisation, and the scaling up of ancillary services. Salik also continues to invest in human capital, increasing its workforce by 26.2 per cent year-on-year in Q2, with Emiratisation reaching 30.2 per cent and women accounting for over 20 per cent of staff.
Khaleej Times
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