Salik Company PJSC Announces AED 544.8 Million Interim Dividend Amid Strong H1 2024 Performance
Salik Company PJSC, Dubai's exclusive toll gate operator, has reported a significant increase in revenue and profit for the first half of 2024. The company has also announced an interim dividend distribution, reflecting its robust financial health and strategic growth initiatives.
Summary
Salik Company PJSC reported a 5.6% YoY increase in revenue for H1 2024, reaching AED 1.1 billion. The company also announced an interim dividend of AED 544.8 million. With new toll gates and strategic partnerships, Salik is poised for continued growth.
Salik Company PJSC, the exclusive toll gate operator in Dubai, has delivered an impressive financial performance for the first half of 2024. The company reported a 5.6% year-on-year (YoY) increase in revenue, reaching AED 1.1 billion. This growth is attributed to a supportive macroeconomic environment and positive tourism trends in Dubai.
Salik recorded 238.5 million revenue-generating trips in H1 2024, up 4.9% YoY. The number of active registered accounts saw a 14.6% YoY increase, climbing to approximately 2.5 million. Additionally, registered vehicles increased by 8.8% YoY to 4.2 million. These figures underscore the growing demand for efficient transportation solutions in Dubai.
The company's net profit before tax grew by 9.2% to AED 598.6 million in the first half of the year. Despite the impact of the new 9% UAE corporate tax, Salik sustained a robust net profit of AED 544.8 million for H1 2024. In light of these strong results, the Board of Directors has approved distributing 100% of the net profit after tax as dividends to shareholders, amounting to AED 544.8 million or 7.263 Fils per share. The dividend is payable on 5 September 2024.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, expressed satisfaction with the company's performance. He highlighted the company's focus on expanding its core tolling business while diversifying revenue streams through strategic initiatives. The addition of two new toll gates in Dubai by the end of November 2024 and a recent parking solutions partnership with Emaar Malls exemplify Salik's commitment to growth and diversification.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, emphasized the resilience of the company's business model and its role in enhancing mobility in Dubai. The increase in revenue-generating trips and active accounts reflects Salik's strategic efforts to meet the growing demand for efficient transportation. Dubai's position as a global tourism hub continues to strengthen, attracting more international visitors, residents, and businesses. Salik plays a pivotal role in making Dubai one of the most accessible cities in the world.
Given the company's strong financial performance, strategic growth initiatives, and commitment to shareholder value, investors might consider holding their positions in Salik. The company's efforts to diversify and expand its revenue streams, coupled with its robust financial health, suggest a promising future.
Source
Summary
Salik Company PJSC, Dubai's exclusive toll gate operator, announced its financial results for the first half of 2024, revealing a 5.6% year-on-year increase in revenue to AED 1.1 billion and a 9.2% rise in profit before tax to AED 598.6 million. The company recorded 238.5 million revenue-generating trips, a 4.9% increase from the previous year, and saw a 14.6% rise in active registered accounts to approximately 2.5 million. Despite the new 9% UAE corporate tax, Salik maintained a net profit of AED 544.8 million for H1 2024. Consequently, the Board of Directors approved distributing 100% of the net profit as dividends to shareholders, amounting to AED 544.8 million or 7.263 Fils per share, payable on September 5, 2024. The company also plans to expand its tolling business and diversify revenue streams with new toll gates and a parking solutions partnership with Emaar Malls.
