Salik Reports Revenue of $630 Million in 2024

Salik Company, Dubai’s exclusive toll gate operator, on Tuesday said that its total revenue for the full year 2024 grew by 8.7% y-o-y to reach $630 million while fourth quarter revenue grew 15.6% y-o-y amounting to $177.26 million.

EBITDA for the full year reached $440 million, a 13.6% y-o-y growth and in terms of operations, total revenue generating trips recorded 498.1 million, rising by 8% y-o-y at the back of the launch of the two new Salik gates, the company said in a bourse filing with Dubai Financial Market (DFM) in the morning.

Salik generated free cash flow of $396 million in FY24, up 0.5% y-o-y, with a free cash flow margin of 63.6%. Free cash flow reached $109.62 million in the fourth quarter, -1.5% y-o-y, but up 8.7% compared to the Q3 of 2024 period, with a free cash flow margin of 61.8%. The free cash flow margin declined by 510 bps y-o-y, mainly relating to the payments of the concessionary rights to RTA, pertaining to the two new toll gates.
Delighted over the financial performance, Salik Chairman Mattar Al Tayer said that the company has reported a very strong year, with healthy revenue growth and record profitability performance.

He said that the financial results for 2024 were a testament to the strength of Salik’s business model and strategy, and their commitment to delivering long-term value to shareholders. During the past year, Salik proudly reached significant strategic milestones, having introduced two new toll gates within the core tolling business and established multiple partnerships.

These strategic partnerships support the company’s ambition to become a global leader in providing sustainable and smart mobility solutions. They also reflect the management’s commitment to delivering innovative solutions that enhance road user experience, expand ancillary revenue streams and supports financial returns, he said.

“With this growth, we see promising opportunities to continue to increase and diversify our revenues, enhance our financial returns, and contributing to the long-term sustainability of our business. We look forward to achieving more operational, financial and strategic milestones in 2025,” he added.

Guidance Revised

Salik CEO Ibrahim Sultan Al Haddad said that the financial results were bolstered by particularly robust performance in the fourth quarter, with increase in revenue-generating trips at the top end of their guided range.

Growth in total revenue exceeded guidance, up by 8.7% y-o-y, along with very strong profitability, as our EBITDA margin reached 68.9%, he noted.

“We are optimistic about the positive trends in Dubai’s economy, which align with and support our growth and vision. We are pleased to revise our guidance for FY25 upwards, projecting revenue growth of 28-29% compared to FY24, alongside an EBITDA margin of 68-69%.”

He continued: “Our revised guidance includes contributions from the implementation of variable pricing and our two new gates, both of which have demonstrated the expected performance in their initial weeks of operation.”

He also reaffirmed their confidence in expanding ancillary revenue streams in 2025, following the successful collaboration with Emaar Malls to provide an innovative, barrier-free parking payment solution.

“We have further broadened our service offering in partnership with Parkonic to integrate Salik’s e-wallet system across 107 parking locations in the UAE, in addition to our pioneering collaboration with Liva Group to streamline the vehicle insurance renewal process,” he added.