Salik Company (SALIK) Q3 2024 earnings summary

Executive summary

• Maintained exclusive tollgate operator status in Dubai with a 49-year concession, 4.3 million registered vehicles, and 2.5 million active accounts as of September 2024, up 8.7% and 7.1% YoY, respectively.

• Achieved robust financial and operational performance, with revenue-generating trips and toll usage revenues exceeding pre-pandemic peaks and Q3 2024 setting new records.

• Expanded into ancillary revenue streams, including a barrier-free parking solution at Dubai Mall, a new insurance partnership with Liva Group, and advertising and data monetization initiatives.

• Announced two new tollgates (Business Bay Crossing and Al Safa South), bringing the total to 10, both nearly 100% solar-powered, operational from November 24, 2024, valued at AED 2.73 billion.

• Advanced ESG initiatives, including joining the UN Global Compact and supporting electric vehicle adoption with free Salik tags.

Financial highlights

• Nine-month 2024 revenue rose 6.2% YoY to AED 1,640.9 million; Q3 revenue up 7.3% YoY to AED 546.1 million.

• Revenue-generating trips reached 355.6 million, up 5.1% YoY, with Q3 at 117.1 million (+5.7% YoY).

• EBITDA for nine months was AED 1,115.0 million, up 8.9% YoY, with a margin of 68%.

• Net profit before tax was AED 903.3 million (+12.5% YoY); after tax, AED 822.0 million (+2.4% YoY), reflecting the new 9% UAE corporate tax.

• Free cash flow for nine months was AED 1,054.7 million, with a margin of 64.3%.

Outlook and guidance

• FY24 revenue and revenue-generating trips expected to grow 7-8% YoY; EBITDA margin projected at 67-68%; net profit margin after tax at 48-49%.

• FY25 revenue growth expected at 25-26% YoY, with trips up 24-25%, driven by new toll gates; normalized growth at 4-5%.

• 2025 growth supported by new gates, floating bridge closure, and ancillary revenue streams.