Salik Firm PJSC (“Salik” or the “Firm”), Dubai’s unique toll gate operator, at this time introduced the Firm’s monetary outcomes for the three-month and nine-month intervals ended September 30, 2024 (“Q3 2024” and “9M 2024”).
Salik continued to ship robust monetary efficiency through the first nine-months of 2024, registering 355.6 million revenue-generating journeys, which elevated 5.1% YoY to drive complete income of AED 1,640.9 million. Income from toll utilization, comprising 86.7% of complete income, rose 5.1% YoY to AED 1,422.2 million within the nine-month interval, with third quarter income from tolls growing 5.7% YoY to AED 468.4 million. Throughout the nine-month interval of 2024, Salik reported EBITDA of AED 1,115.0 million, up 8.9% YoY, and revenue earlier than tax of AED 903.3 million, up 12.5% YoY. Salik generated web revenue after tax of AED 822.0 million throughout the identical interval, with third quarter revenue after tax growing 8.8% YoY to AED 277.3 million.
His Excellency Mattar Al Tayer, Chairman of the Board of Administrators of Salik, stated: “Our efficiency within the first nine-months of 2024 is a testomony to our strong enterprise mannequin and dedication to enhancing mobility in Dubai. We made additional strategic progress within the third quarter, having formally launched our parking partnership with Emaar to offer parking options at Dubai Mall, a key initiative to diversify our income base that’s already contributing positively to our monetary efficiency. On 24 November we will likely be commencing operations of the Enterprise Bay Crossing and Al Safa South gates. The launch of the 2 new gates is a continuation of the RTA’s strategic plan, geared toward enhancing street networks and services, public transport traces and providers with the intention of bettering the circulation of visitors throughout the Emirate of Dubai, additional strengthening Dubai’s place as a number one world vacation spot.”
Ibrahim Sultan Al Haddad, Chief Government Officer of Salik, commented: “Our outcomes for the nine-month interval ended 30 September 2024 had been bolstered by robust efficiency within the third quarter, with revenue-generating journeys growing 5.7% year-on-year, together with very strong profitability. With our inaugural parking answer at Dubai Mall now in full swing, and the operation of the 2 new toll gates beginning on 24 November 2024, we stay inspired by constructive developments in Dubai’s economic system, that are supportive of our personal development. On this foundation, we’re happy to reiterate our not too long ago upgraded steering for FY24, anticipating income development to extend by 7-8% in comparison with FY23, significantly in view of This autumn sometimes being a seasonally stronger quarter for Salik. We additionally count on this good development momentum to proceed into subsequent 12 months, with revenue-generating journeys anticipated to extend within the vary of 24-25% in FY25, together with the contribution from the 2 new gates.”
Efficiency Highlights
Mobility Highlights
Salik posts 5.1% YoY development in revenue-generating journeys in nine-months of 2024, reaching 355.6 million
The overall variety of journeys, together with discounted journeys, made by way of Salik’s eight toll gates grew 4.1% YoY within the nine-month interval, pushed by Dubai’s continued attraction to vacationers and business-as-usual business actions. Consequently, revenue-generating journeys reached AED 355.6 million within the nine-month interval, up 5.1% YoY, with income producing journeys totalling AED 117.1 million within the third quarter, up 5.7% YoY, the best third quarter efficiency for revenue-generating journeys since inception. Progress remained robust throughout a number of gates within the third quarter, with Jebel Ali seeing robust double-digit development (+c.16%), and different gates rising within the high-single digit vary, together with Airport Tunnel (+c.9%) and Al Safa (+c.7%).
Progress in energetic accounts exceeds 7% YoY, with registered autos growing by 8.7% YoY to 4.3 million
Registered energetic accounts elevated 7.1% YoY to c.2.5 million within the nine-months of 2024, from c.2.3 million within the nine-month interval of 2023, with tag activations reaching c.268,000 within the third quarter, an 18.6% YoY enhance. As well as, the variety of autos registered with Salik within the third quarter elevated 8.7% YoY, reflecting the Authorities of Dubai’s continued success in increasing the economic system and making certain the Emirate stays a key vacation spot for tourism and new residents.
Monetary Highlights
Continued robust efficiency drives income to AED 1,640.9 million in nine-months of 2024, up 6.2% YoY
Toll utilization charges: income through the nine-month interval elevated by 5.1% YoY to AED 1,422.2 million. The robust development stays supported by the influx of vacationers and elevated motion of people throughout Dubai, with third-quarter toll utilization payment revenues growing 5.7% YoY to AED 468.4 million.
Fines: income from fines elevated 7.6% YoY to AED 174.8 million within the nine-month interval, with the third quarter up 7.9% YoY to AED 58.7 million. The variety of web violations (accepted minus dismissed violations) grew 0.8% YoY in Q3 2024, reaching c.670,000. Internet violations through the third quarter represented 0.4% of web toll visitors, with income from fines contributing 10.7% to complete income within the nine-month interval.
Tag activation charges: grew strongly within the nine-month interval, with income growing 23.3% YoY to AED 30.1 million, up 11.3% YoY to AED 10.3 million within the third quarter. Tag activation charges contributed 1.8% of complete revenues within the nine-month interval.
Salik maintained robust profitability within the nine-months, with high-single digit EBITDA development, up 8.9% YoY
Salik generated EBITDA of AED 1,115.0 million within the nine-month interval of 2024, up 8.9% YoY from AED 1,024.0 million within the prior 12 months. The robust development within the nine-month interval was pushed by a double-digit year-on-year enhance in EBITDA inside the third quarter, having elevated 14.0% YoY to AED 376.7 million from AED 330.4 million in Q3 2023, the best third quarter EBITDA in Salik’s historical past. The EBITDA margin reached 68.0% within the nine-month interval, in comparison with a margin of 66.2% throughout the identical interval in 2023. The EBITDA margin expanded considerably within the third quarter to 69.0% in comparison with the 64.9% in Q3 2023 and 67.8% within the second quarter of 2024.
Within the nine-month 2024 interval, Salik reported web revenue earlier than taxes of AED 903.3 million, marking a robust 12.5% enhance year-on-year, with third quarter revenue earlier than tax growing 19.6% YoY to AED 304.7 million. Following the implementation of a brand new 9% company tax within the UAE in 2024, Salik generated web revenue after taxes of AED 822.0 million for the nine-month interval, a 2.4% YoY enhance, with third quarter revenue after tax growing by excessive single digits, up 8.8% YoY to AED 277.3 million.
Abstract of assertion of revenue or loss
Salik continued to supply tariff exemptions to autos utilized by charities, faculties, folks of dedication, ambulances, and different public providers, as required by legal guidelines, laws and Concession Settlement. The variety of free-of-charge journeys made by exempted autos within the nine-month interval by way of Salik’s eight toll gates grew 4.1% YoY reaching 6.0 million, with the variety of registered exempted autos up 8.5% YoY to achieve 163,376 autos by the top of the nine-month interval.
Steadiness sheet stays strong, with web debt/EBITDA comfortably inside Firm’s goal ratio
The Firm recorded a beneficial web working capital stability of AED -218.8 million as of 30 September 2024, equating to c.-10.0% as a proportion of annualized revenues. As at 30 September 2024, web debt stood at AED 3,163.3 million, from AED 2,947.1 million on the finish of June 2024. This interprets to a trailing twelve-month web debt/EBITDA ratio of two.1x, considerably beneath the Firm’s debt covenant of 5.0x.
Abstract of economic place
Stable free money circulation of AED c.1.1 billion, up 1.3% year-on-year, with a margin of 64.3%
Abstract of money circulation
Salik generated free money circulation of AED 1,054.7 million within the nine-month interval, up 1.3% YoY, with a free money circulation margin of 64.3%. Free money circulation reached AED 370.3 million within the third quarter, up 3.2% year-on-year, with a free money circulation margin of 67.8%. The free money circulation margin declined by c.310basis factors versus the prior 12 months within the nine-month interval, and c.270 foundation factors versus Q3 2023, primarily as a consequence of a rise in intangible property associated to the parking administration answer.
Stable free money circulation of AED c.1.1 billion, up 1.3% year-on-year, with a margin of 64.3%
Abstract of money circulation
Salik generated free money circulation of AED 1,054.7 million within the nine-month interval, up 1.3% YoY, with a free money circulation margin of 64.3%. Free money circulation reached AED 370.3 million within the third quarter, up 3.2% year-on-year, with a free money circulation margin of 67.8%. The free money circulation margin declined by c.310basis factors versus the prior 12 months within the nine-month interval, and c.270 foundation factors versus Q3 2023, primarily as a consequence of a rise in intangible property associated to the parking administration answer.
Stable free money circulation of AED c.1.1 billion, up 1.3% year-on-year, with a margin of 64.3%
Abstract of money circulation
Salik generated free money circulation of AED 1,054.7 million within the nine-month interval, up 1.3% YoY, with a free money circulation margin of 64.3%. Free money circulation reached AED 370.3 million within the third quarter, up 3.2% year-on-year, with a free money circulation margin of 67.8%. The free money circulation margin declined by c.310basis factors versus the prior 12 months within the nine-month interval, and c.270 foundation factors versus Q3 2023, primarily as a consequence of a rise in intangible property associated to the parking administration answer.
Strategic Progress
Strategic evolution to turning into a worldwide chief; two new gates to be operational from 24 November 2024
Earlier in 2024, Salik introduced its ambition to turn out to be a worldwide chief in offering sustainable and good mobility options by constructing on its experience within the tolling enterprise and on its robust ESG credentials, while specializing in two extra pillars to spur development and resilience by diversifying the enterprise. These embrace: i) attaining sustainable development and ii) establishing itself as a future-proof firm.
Salik is advancing properly on its up to date technique, having introduced the introduction of two new toll gates in Dubai and the mixed valuation of the 2 new toll gates at Enterprise Bay and Al Safa South.
As beforehand disclosed, the 2 new gates are valued at a complete of AED 2,734 million, with the Enterprise Bay Gate valued at AED 2,265 million and the Al Safa South Gate valued at AED 469 million.
The brand new Enterprise Bay Crossing and Al Safa South gates are anticipated to be operational on 24 November 2024 and mark continued progress for the core tolling enterprise. The introduction of the 2 new gates is a key milestone and Salik is happy with the progress made in launching the brand new gates, with each toll gates presently below last preparation and testing part forward of go-live, consistent with expectations.
Enhancing ancillary income: Salik’s seamless parking answer operational at Dubai Mall
Salik made an vital step in increasing its ancillary income streams by way of the third quarter, with the profitable launch of its barrier-free parking cost answer at Dubai Mall on 1 July 2024. This technology-driven initiative enhances the parking expertise throughout the Style, Grand, and Cinema parking zones, in a strategic partnership with Emaar Malls to enhance customer comfort on the world-famous procuring and leisure vacation spot.
The primary full quarter efficiency of the parking answer has been robust, with a income contribution of AED 2.57 million within the three months since launching in July 2024. The barrier-free parking cost answer processed a complete of three.8 million transactions, all of which had been 100% seamless, consistent with our ambitions to ship a seamless paid parking system to reinforce the visitor expertise, enhance parking availability and streamline the cost course of, with 100% of the transactions being autopayment.
Enhancing ancillary income: Customised Salik tags initiative; new LIVA motor insurance coverage partnership
Salik is happy to announce it’s within the technique of launching an revolutionary Custom-made Tags initiative, permitting company clients to personalize Salik tags with distinctive designs and messages. This initiative displays Salik’s dedication to enhancing buyer expertise and embracing innovation. Along with this thrilling launch, Salik can also be conducting a evaluation of its beforehand introduced plans for gantry commercials. Salik is presently not capable of proceed with that specific promoting initiative for technical causes, nevertheless Salik stays dedicated to discover the in-app and web site commercial alternatives, along with the latest launch of the Custom-made Tags.
Though a post-period occasion, Salik has additionally partnered with LIVA (previously RSA), a number one multi-line insurer within the GCC, to supply advertising and marketing main insurance coverage options. The partnership will provide one-of-a-kind bespoke insurance coverage options to drivers within the UAE, streamlining the renewal course of for a larger comfort and effectivity. Salik will leverage its complete driver and car database to offer value-added providers to clients by sending well timed renewal reminders to mitigate insurance coverage protection lapses. These notifications will embrace a hyperlink directing clients to a LIVA touchdown web page, the place the motor insurance coverage coverage could be renewed in just a few easy steps. The partnership marks one other key milestone in Salik’s technique to reinforce its ancillary income streams and set up its place as a frontrunner in sustainable mobility options.
Salik joins UN International Compact to advance Sustainability targets
In July 2024, Salik joined the United Nations International Compact, the main world initiative for company sustainability, demonstrating its dedication to moral enterprise practices and sustainable operations. By aligning with the UN International Compact’s ideas, Salik goals to reinforce social and environmental accountability whereas contributing to the UAE’s sustainable growth targets. The Firm will actively pursue initiatives that cut back its environmental impression, help social progress and promote a sustainable future for the UAE.
Salik continues to prioritize investing in its human sources and uphold its dedication to variety and inclusivity. Within the first nine-months of 2024 Salik expanded its full-time workforce by 15% YoY, to 46 personnel, with the variety of nationalities represented remaining at 12. Salik continues to progress on Emiratization, attaining a stage of 30%% by the top of the interval.
Enterprise Outlook
FY24 revenue-generating journeys anticipated to extend by 7-8% YoY, with FY25 anticipated to develop 24-25% YoY
Full 12 months 2024 expectations stay unchanged, with complete income and revenue-generating journeys anticipated to extend within the vary of 7-8% for 2024, together with the anticipated income from the 2 new gates ranging from 24 November 2024, and a strong EBITDA margin of 67-68%.
Salik has additionally introduced its monetary steering for FY25, with complete income development anticipated to be within the vary of 25-26% year-on-year, together with the impression of the 2 new gates launched on 24 November 2024, because of the expansion in revenue-generating journeys, which is anticipated to extend 24-25% YoY in FY25, with EBITDA margin within the vary of 67-68%. On a normalised foundation, excluding the contribution from the 2 new gates, complete income is anticipated to extend 4-5% YoY in FY25.
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