Salik doubles dividend pay to $300m as revenue surges 12%

Wam

Dubai toll operator Salik has proposed a dividend of AED550 million ($150 million) for the second half of 2023 after toll usage revenue surged 12 percent to AED1.8 billion.

Total dividends for the year stand at AED1.1 billion, more than double that allocated the year before. A total of AED548 million was distributed to shareholders in the first half of 2023.

Net profit fell 11 percent year on year to AED1.1 billion in 2023. The company clarified that profit comparison between 2022 and 2023 may not be accurate due to changes in its operating structure and cost profile.

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Since July 2022, Salik operates as a separate legal entity from the Roads & Transport Authority through a 49-year concession agreement. It therefore incurs new costs, such as concession fees, rent, amortisation, transitional service expenses and finance costs.

Toll usage revenue represented 87.5 percent of total revenue of AED2 billion last year, supported by strong growth in tourism and residency.

The total number of revenue-generating trips reached 461 million, beating the pre-pandemic peak of 435 million recorded in 2019.

“Salik has reported another strong year, with record top-line performance supported by continued strength in revenue-generating trips,” chairman Mattar Al Tayer said.

“GDP growth and strong tourism inflow are evidence that the government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit.”

Under the new corporate strategy, he said that the company will diversify its revenue streams to support the expansion of its core tolling business.

The number of vehicles registered with Salik increased 8.3 percent year on year. In addition, registered active accounts increased 16 percent year on year to 2.4 million at the end of 2023.