Salik Company (SALIK) Q3 2024 earnings summary

Executive summary

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

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

• Expanded into ancillary revenue streams, including barrier-free parking at Dubai Mall, insurance partnerships, and customizable tags.

• Announced two new tollgates, bringing the total to 10, both nearly 100% solar-powered, operational from November 2024.

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

Financial highlights

• Total revenue for the first nine months of 2024 rose 6.2% year-on-year to AED 1,640.9 million; Q3 revenue was AED 546.1 million, up 7.3% YoY.

• EBITDA for the nine months was AED 1,115.0 million (margin 68%, +8.9% YoY); net profit after tax was AED 822.0 million (+2.4% YoY).

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

• Net debt stood at AED 3.2 billion, with a net debt-to-EBITDA ratio of 2.1x.

• AED 1,094.8 million in dividends paid during the nine-month period.

Outlook and guidance

• 2024 full-year revenue and revenue-generating trips expected to grow 7%-8% YoY, with EBITDA margin projected at 67%-68%.

• Net profit margin after tax for 2024 and 2025 expected at 48%-49%.

• 2025 revenue growth expected at 25%-26%, supported by two new gates and ancillary streams.