Dubai’s toll gate operator, Salik, has introduced a new feature allowing corporate clients to customise their vehicle tags with unique designs and messages, as part of efforts to improve user experience and explore non-core revenue opportunities.
The announcement coincides with Salik’s release of its first-quarter financial results, which showed a 33.7% year-on-year increase in net profit, reaching Dhs370.6 million. The rise was supported by the recent implementation of variable pricing and the addition of two new toll gates in November 2024.
Salik revenue growth in Q1
Total revenue for the January to March period rose to Dhs751.6 million, up 33.7%. Salik recorded 158 million chargeable trips across its network, with peak-hour trips (charged at Dhs6) accounting for 39.3 million and off-peak trips (charged at Dhs4) reaching 107.5 million. An additional 11.2 million trips occurred during the free post-midnight window.
Toll usage fees contributed Dhs665.6 million, an increase of 35.5% compared to the same period last year. According to the company, the boost came from the variable pricing model introduced in late January, increased gate locations, and Dubai’s strong tourism performance.
Fines and violations
Revenue from fines also grew by 16.2% to Dhs68.4 million. Salik reported 786,000 net violations during the quarter, a 15% rise year-on-year, representing 0.4% of total toll traffic. Fines contributed 9.1% to Salik’s total Q1 revenue.
Financial outlook remains positive
“Profitability is robust, with EBITDA growth of more than 35%, delivering an industry leading EBITDA margin of 69.1%,” said Ibrahim Sultan Al Haddad, CEO of Salik.
“A healthy first quarter positions us well for the year ahead – we are pleased to reiterate our full year guidance, with total revenue expected to grow 28-29%, and an EBITDA margin of 68-69% as we continue to strengthen our non-core offering while tapping new opportunities,” he added.
Salik’s system uses RFID technology to automatically detect vehicles and deduct toll fees from prepaid accounts when passing through any of its gates.
tanvir@dubainewsweek.com
