Salik records highest Q3 revenue figures since operations commenced in 2007,
reporting revenues of AED 509 Million and 14.2% YoY Growth
• Revenue-generating trips reached c.110.8 million in the third quarter of 2023, up 14.6% YoY, supported by
healthy macroeconomic environment in Dubai and the city’s attractiveness to tourists and new residents
• Active registered accounts and vehicles increased 13.0% and 8.8% YoY, respectively, at the end of the third
quarter, reaching 2.4 and 3.9 million
• Salik delivered robust net profit of AED 255 million, representing a 5.3% YoY growth, and free cash flow of c.
AED 359 million in the third quarter
• Key operational milestones included the inauguration of a new eco-friendly office and celebration of one
year anniversary since award-winning listing on DFM
Dubai, UAE – 13 November 2023: His Excellency Mattar Al Tayer, Chairman of the Board, and the Board of
Directors of Salik Company PJSC (“Salik” or the “Company”), Dubai’s exclusive toll gate operator, have approved
the Company’s condensed financial results for the nine-month and three-month periods ended September 30,
2023.
In the third quarter of 2023, Salik continued to deliver strong top-line performance, with 110.8 million revenue-
generating trips and total revenue of AED 509 million. Toll usage revenue, which represent 87.1% of total
revenue, increased 14.6% YoY, the highest third quarter performance since Salik commenced operations in 2007,
supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination
both for visitors and people relocating to the city.
Salik remains highly profitable, reporting net profit of AED 255 million during the third quarter of 2023, up 5.3%
against the prior year.
Commenting on the results, His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said:
“Salik’s robust performance in the third quarter of 2023 is a testament to our strategic vision and commitment
to delivering long-term value to our shareholders. Strong and sustained momentum in the third quarter is also
evidence that the Government of Dubai’s focus on expanding the economy, particularly focusing on population
growth and maintaining the Emirate’s attractiveness to tourists, is bearing fruit. Salik continues to emerge as a
leading toll gate operator globally, supported by a highly efficient business model and a buoyant local
macroeconomic environment.”
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented: “We maintained high levels of top-line
performance during the third quarter, recording 14.2% growth in revenue and an EBITDA margin of 64.9%. As
such, we are very encouraged by year-to-date performance as well as by supportive macroeconomic indicators
for the remainder of the year. This was recently demonstrated by the number of students enrolling in private
sector schools in Dubai recording its highest-ever growth since 2007, clear evidence of the city’s strong attraction
to new residents. We are pleased to reiterate our full year financial guidance and expect underlying revenue-
generating trips to grow 9-10% compared to 2022 with an EBITDA margin in the range of 66-67%.”
Al Haddad added: “The third quarter was also a time for passing some important business milestones, as we
celebrated our first full year since our award-winning listing on Dubai Financial Market in September. We also
inaugurated our new eco-friendly office in Festival Tower, in line with our commitment to reducing the
Company’s carbon footprint, an exciting and important moment in our sustainability journey.”Mobility Highlights
Salik posts c.15% YoY growth in revenue-generating trips to 110.8 million in Q3 2023
The total number of trips, including discounted trips, made through Salik’s eight toll gates in the third quarter of
2023 grew 12.3% YoY, driven by Dubai’s continued attraction to tourists and business-as-usual commercial
activities. As a result, revenue-generating trips increased 14.6% to 110.8 million in the third quarter, compared
to 96.6 million trips in the same period of the prior year. During the first nine-months of 2023, revenue
generating trips increased 12.0% YoY to 338.2 million.
Revenue-generating trips remained comfortably above the pre-pandemic peak of 107.4 million recorded in the
second quarter of 2019 and are only marginally below the all-time record level of the second quarter of 2023,
due to seasonality, as activity tends to slow down during the third quarter due to summer holidays before picking
up in the fourth quarter.
In the third quarter of 2023, the Al Maktoum Bridge gate saw the number of revenue-generating trips – excluding
paid taxi trips – increase 61.4% YoY, due to the continued closure of the nearby Floating Bridge and diversion
of traffic to the gate. Al Garhoud Bridge, similarly, saw the number of revenue-generating trips, excluding taxi
trips, increase 16.3% YoY. Excluding both Al Maktoum and Al Garhoud Bridges, Salik’s revenue-generating trips
increased 11.2% YoY. Robust growth exceeded 10% at several toll gates, including; Al Barsha (+c. 10%); Al
Mamzar North (+c. 10%); Airport Tunnel (+c. 14%); and Jebel Ali (+c. 17%).
..
Q3 Q3 % Δ Q2 % Δ 9M 9M % Δ
Million
2023 2022 YoY 2023 QoQ 2023 2022 YoY
Total trips(1) 143.7 128.0 12.3% 146.1 -1.7% 436.7 394.8 10.6%
Discounted trips(2) 31.5 30.1 4.8% 30.8 2.3% 94.0 88.3 6.4%
% of total trips 21.9% 23.5% -1.6% 21.1% 0.8% 21.5% 22.4% -0.8%
Net toll traffic(3) 112.2 97.9 14.5% 115.3 -2.7% 342.7 306.6 11.8%
% of total trips 78.1% 76.5% 1.6% 78.9% -0.8% 78.5% 77.6% 0.8%
Revenue-generating trips(4) 110.8 96.6 14.6% 113.8 -2.7% 338.2 302.0 12.0%
% of net toll traffic 98.7% 98.7% - 98.7% 0.1% 98.7% 98.5% -
% of total trips 77.1% 75.5% 1.6% 77.9% -0.8% 77.4% 76.5% 1.0%
(1) Total vehicle trips through Salik toll gates
(2) Discounted trips include taxis without passengers, Al Mamzar and Al Maktoum gates free time and discounts, vehicles exempted by law, and multiple violations and other. Multiple
violations refer to drivers that repeatedly drive through the toll gates without paying in 24 hours. In this case, the fine is paid only once
(3) Net toll traffic is total trips minus discounted trips
(4) Revenue-generating trips is net toll traffic minus fines & penalties and unreconciled trips. Revenue-generating trips is the driver for Salik's toll usage fees revenue, which accounts for
the majority of Salik's revenue
Registered vehicles increase c.8.8% YoY to c.3.9 million
The number of vehicles registered with Salik increased c.8.8% YoY as of September 30, 2023, reflecting the
Government of Dubai’s ongoing success in expanding the economy and ensuring the Emirate remains a key
destination for tourism and new residents. In addition, registered active accounts increased 13.0% YoY to
approximately 2.4 million by September 30, 2023. Tag activations reached c. 226,000 tags in the third quarter of
2023, a 17.0% increase from last year.Financial Highlights
Note on the financial statements
Comparing Salik's profitability between 9M 2022 and 9M 2023 may not accurately reflect the company's
performance on a like-for-like basis, due to changes in its operating structure and cost profile. Since July 2022,
Salik operates as a separate legal entity from the RTA through a 49-year concession agreement. As a result, Salik
incurs new costs, such as concession fees, rent, amortization, and transitional service expenses, as well as finance
costs.
Continued strong performance drives revenue up 14.2% YoY to AED 509 million in Q3 2023
• Toll usage fees: revenue continued to increase during the third quarter of 2023, supported by the inflow of
tourists and movement of individuals across Dubai. As a result, toll usage fee revenues increased 14.6% YoY
to AED 443 million. On a quarterly basis, toll usage fee revenues decreased by 2.7% due to seasonality,
where activity tends to slow down during the third quarter given the summer holidays before picking up in
the fourth quarter. Toll usage fees represented 87.0% of the quarter’s total revenues.
• Fines: performed strongly during the quarter, with revenues up 11.0% YoY to AED 54 million from AED 49
million in the prior year. Sequentially, revenue from fines also increased, up 3.1%, with the strong
performance due to an increase in the number of net violations (accepted minus dismissed violations). The
number of net violations grew c. 13.0% YoY, having reached c. 665,000 in the third quarter of 2023, versus
c. 586,000 in the prior year and c. 620,000 in the second quarter of 2023. Net violations during the quarter
registered 0.6% of net toll traffic which remains fairly in line with the second quarter, and revenue from
fines contributed 10.7% to total revenue.
• Tag activation fees grew strongly on both a year-on-year and a quarterly basis. Revenue from tag activation
fees increased 20.7% YoY to AED 9 million, or up 42.4% versus the second quarter. Tag activation fees
contributed 1.8% of total revenues.
During the first nine-months of 2023, revenue increased 11.2% YoY to over AED 1.5 billion, mainly driven by a
12.0% YoY traffic-driven growth in toll usage fees.
Profitability remained strong in the third quarter, with net profit up 5.3% YoY
Salik generated EBITDA of AED 330 million during the third quarter of 2023, up 13.5% YoY. EBITDA margin
reached 64.9% in the period, down on a year-on-year basis due to non-recurring cost items. On an underlying
basis, removing the impact of one-off items including costs relating to IT and fit-out expenses associated with
the inauguration of Salik’s new office, adjusted EBITDA amounts to AED 333 million for the period, with adjusted
margins of 65.3%, broadly stable year-on-year.
As compared to the previous quarter, EBITDA was down 4.5%, mainly due to the presence of non-recurring
expenses in the third quarter 2023, as well as seasonality, where activity tends to slow during the third quarter
due to summer holidays.
Net profit reached AED 255 million in the third quarter of 2023, up 5.3% YoY, despite higher net finance costs
given the evolving interest rate environment as the Company secured an AED 500 million short term deposit in
the third quarter to lessen the impact of rising profit rates on finance costs. Compared to the second quarter,
net profit was down 6.6% QoQ at the back of lower EBITDA and higher net finance costs.Summary of statement of profit or loss
Q3 Q3 % Q2 % Δ 9M 9M %
AED million
2023 2022 Δ YoY 2023 QoQ 2023 2022 Δ YoY
Revenue 509 445 14.2% 517 -1.5% 1,546 1,390 11.2%
Toll usage fees 443 386 14.6% 455 -2.7% 1,353 1,208 12.0%
Fines 54.4 49.0 11.0% 53 3.1% 163 153 5.9%
Tag activation fees 9.3 7.7 20.7% 7 42.4% 24 24 2.4%
Other revenue 2 2 -8.3% 2 -2.4% 6 5 16.4%
EBITDA(1) 330(2) 291 13.5% 346 -4.5% 1,024 1,091 -
EBITDA margin 64.9% 65.4% -0.4% 66.9% -2.0% 66.2% 78.5% -
Finance costs, net (55) (29) 90.1% (53) 4.2% (159) - -
Profit for the period 255 242 5.3% 273 -6.6% 803 1,039 -
Earnings per share (AED) 0.034 0.032 5.3% 0.036 -6.6% 0.107 0.138 -
(1) EBITDA is profit for the period, excluding the impact of finance cost, finance income, and depreciation and amortization expenses.
(2) Q3 2023 adjusted EBITDA of AED 333 million, adjusted for the costs related to the relocation to the new office
Balance sheet remains solid
The Company recorded a favourable net working capital balance of AED -164 million as of 30 September 2023,
an increase compared to the first half of 2023 amount of AED -131 million, equating to c. 8.0% as a percentage
of revenues.
At the end of the quarter, net debt stood at AED 3.3 billion,. This translates to a trailing twelve months’ net
debt/EBITDA ratio of 2.4x, significantly below the Company’s debt covenant of 5.0x.
Summary of financial position
30 June
AED million 30 Sept 2023 % Δ QoQ 31 Dec 2022 % Δ YtD
2023
Total assets, including: 4,895 5,178 -5.5% 5,303 -7.7%
Cash and cash equivalents 167 910 -81.6% 823 -79.7%
Short Term Deposit with Bank(1) 500 - - - -
Total liabilities, including: 4,528 4,517 0.2% 4,699 -3.6%
Borrowings 3,988 3,987 0.0% 3,986 0.1%
Contract liabilities (2)) 343 342 0.5% 338 1.7%
Total equity 367 660 -44.4% 604 -39.2%
Net debt(3) 3,321 3,077 7.9% 3,163 5.0%
Net working capital balance (4) (164) (131) 24.5% (147) 11.1%
(1) Represent Fixed deposit with original maturity of 3 to 12 months. Previously the term deposits had maturity less than 3 months and thus were classified as Cash
(2) Contract liabilities is the sum of current and non-current balances paid in advance by customers relating to recharges and too-ups and tag activation fees
(3) Net debt is total borrowings minus cash and cash equivalents minus short term deposit
(4) Net working capital is the balance of inventories plus trade and other receivables (unadjusted for impairments) plus dues from related parties minus trade and other payables,
minus due to a related party minus current portion of contract liabilities minus current portion of lease liability
Solid free cash flow of AED 359 million, with a margin of 70.5% improves on previous quarter
In the third quarter of 2023, Salik generated free cash flow of AED 359 million, supported by continued strong
traffic performance and the movement of individuals. The Company incurred AED 4.5 million of capital
expenditures associated with IT and fit-out for the office relocation during the third quarter of 2023. The free
cash flow margin improved sequentially in the period, reaching 70.5% from 69.1% in the previous quarter.Summary of cash flow
AED million Q3 2023 Q3 2022 % Δ YoY Q2 2023 % Δ QoQ
Operating cash flow before changes in working
338 302 12.2% 354 -4.3%
capital
Changes in working capital 25 13 90.8% 4 563.9%
Net cash flow from operating activities 363 315 15.4% 357 1.7%
Net cash (used in) / generated from investing
(497) (4,000) -87.6% 7 -
activities(1)
Net cash used in financing activities (610) (30) - (550) 10.8%
Free cash flow(2) 359 315 14.0% 357 0.4%
Free cash flow margin(3) 70.5% 70.6% -0.2% 69.1% 1.4%
(1) Net cash of AED 4,000 used for the upfront payment of concession fee in Q3 2022.
(2) Free cash flow is net cash flows from operating activities less purchases of property and equipment plus proceeds from the sale of property and equipment
(3) Free cash flow margin is free cash flow divided by revenue
Business Highlights
Salik celebrates one-year anniversary of debut on Dubai Financial Market (DFM)
September 2023 marked Salik’s one year anniversary following its award-winning listing on Dubai Financial
Market. The IPO raised gross proceeds of over AED 3.7 billion, with oversubscription of more than 49 times in
aggregate. Salik continues to emerge as a leading toll gate operator globally, supported by the visionary
leadership of Dubai and the Road & Transport Authority’s ambitions of expansion and growth. The Company’s
achievements in the last twelve months reflect Dubai's resilience in a highly volatile global economy and a surge
in the volume of traffic on the city’s toll roads, further validating Salik’s business model.
Salik is pursuing its sustainability goals, having relocated to a new eco-friendly office
Salik is committed to reducing its carbon footprint, aligning with Dubai’s goal of achieving net-zero emissions by
2050. As part of this effort, the Company inaugurated its new eco-friendly office at Festival Tower, underscoring
its focus on environmental stewardship and sustainability. The new office is a LEED Gold Certified building
featuring motion sensor lighting and 5-star energy-rated appliances and has been designed using sustainable
materials. In line with its mission to reduce its environmental footprint, Salik's new office features state-of-the-
art, energy-efficient IT infrastructure. This approach to an eco-friendly working environment not only aligns with
the Company's sustainability agenda, but also builds on Salik’s commitment to powering all toll gates by solar
energy over the medium term.
Salik maintains a growing and positive impact on the community
Salik continues to prioritize investing in its human resources and upholds its commitment to diversity and
inclusivity. Salik expanded its full-time workforce from 19 on September 30, 2022 to 40 personnel as on
September 30, 2023, and saw a rise in the number of nationalities represented from 7 to 12. Furthermore, Salik
continued to emphasize gender diversity, with females comprising 25% of the total workforce as of September
30, 2023. The company also achieved advancements in Emiratization, attaining a level of approximately 35% by
the end of the quarter.
Salik remained committed to environmental sustainability by encouraging the use of electric vehicles and
providing free Salik tags to their owners. As of September 30, 2023, the number of registered vehicles with these
tags grew by 84.4% YoY, and increased by 7.6% compared to the previous quarter, reaching 3,438 vehicles.
Salik continued to offer tariff exemptions to vehicles used by charities, schools, people of determination,
ambulances, and other public services. The number of free-of-charge trips made by exempted vehicles through
Salik’s eight toll gates increased 8.0% YoY to 1.9 million during the third quarter of 2023, at a rate of over 21,000trips per day, on average. The increase was driven by an increase in the number of registered exempted vehicles
by 12.8% YoY to reach over 51,000 vehicles by the end of the quarter.
Business Outlook
Salik’s management is pleased to reiterate its full year outlook for 2023, having delivered strong revenue growth
in the third quarter, supported by a continued increase in the number of trips made through its eight toll gates
coupled with robust EBITDA margin performance. The Company expects underlying revenue-generating trips to
grow 9-10% in 2023 compared to 2022, with an EBITDA margin in the range of 66-67%.
—ENDS —
About Salik Company PJSC
The Company was established in its current form, as a public joint stock company in June 2022 pursuant to Law
No. (12) of 2022. “Salik”, which means “seamless mobility” in Arabic, is Dubai’s exclusive toll gate operator and
manages the Emirate of Dubai’s automatic toll gates utilising Radio-Frequency-Identification (RFID) and
Automatic-Number-Plate-Recognition (ANPR) technologies. The Company currently operates 8 toll gates located
at strategic junctures, especially on Sheikh Zayed Road, which is considered the main road in Dubai. In 2022, 539
million journeys were recorded through Salik’s toll gates, whether for residents commuting within the Emirate
for their daily activities or for tourists visiting Dubai’s attractions. Under a 49-year concession agreement (ending
in 2071), with the Roads and Transport Authority (RTA), Salik has the exclusive right to operate existing and any
future toll gates in Dubai.
Investor Relations Media Enquiries
Mohamed Zein Faisal Tawakul
Head of Investor Relations Marketing & Corporate Communications Manager
E: Mohamed.Zeinelabedin@salik.ae E: Faisal.Tawakul@salik.ae
Disclaimer
No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this
document which could be classed a “forward-looking” are based upon various assumptions, including, management’s
examination of historical operating trends, data contained in the Company’s records and other data available from third
parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are
inherently subject to significant risks, uncertainties and contingencies. Forward-looking statements are not guarantees of
future performance. Risks, uncertainties, contingencies could cause the actual results of operations, financial condition and
liquidity of the Company to differ materially from those results expressed or implied in the document by such forward-
looking statements. No representation or warranty is made that any of these forward-looking statements or forecasts will
come to pass or that any forecast result will be achieved. No reliance should be placed on any forward-looking statement.

Sentiment: neutral