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Salik records highest Q3 revenue figures since operations commenced in 2007, – Business

Salik records highest Q3 revenue figures since operations commenced in 2007, - Business

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 revenuegenerating 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 schoolsin 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 revenuegenerating 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%).