Increase in Q2 profits for Salik, attributed to the introduction of new toll gates and the implementation of dynamic pricing strategies
In the bustling city of Dubai, the toll operator Salik has seen significant changes in its financial performance, attributed to the introduction of new toll gates and a shift towards a dynamic pricing system.
The second quarter of 2025 saw Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) soar by nearly 51% to Dh545.3 million, and the profit for the first six months of the year climbed by 41.5%. This growth was further reflected in the year-on-year revenue increase of 45.6% to Dh775.7 million for the reporting period.
Salik's strong performance has also led to a recommended cash dividend equivalent to its first-half profit. The recommended dividend translates into 10.278 fils earning per share.
The company upgraded its guidance for the full year 2025, expecting revenue to grow between 34% and 36%. Ebitda margins are now projected in the range of 68.5% to 69.5% for the full year.
Two new toll gates were introduced in November 2024 on Business Bay Crossing on Al Khail Road and at Al Safa South on Sheikh Zayed Road. Salik also implemented a new dynamic pricing scheme in January 2025, which includes free passage for vehicles from 1am to 6am.
However, it is not possible to ascertain the precise effects on Salik’s profitability metrics, such as net income and EBITDA, resulting from these toll gate additions or the dynamic pricing system. Without direct financial statements or official reports, the quantitative or percentage change in these metrics remains undisclosed.
Despite the positive financial outlook, Salik's shares settled 1.87% lower at Dh6.30 on the DFM at the end of trade on Wednesday. The toll operator's revenue from fines issued to motorists during the second quarter increased by 15.7% year-on-year to Dh134.3 million.
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[1] The news of Salik's financial success, achieved through the addition of new toll gates and dynamic pricing system, has made headlines in the UAE's business and finance sector.[2] A recent video review of the Dubai's infrastructure developments featured an in-depth analysis of Salik's performance and its impact on the city's traffic management.[3] In the realm of technology, Salik's innovative approach to toll collection has been a topic of interest, with experts discussing the potential applications of dynamic pricing systems in other business sectors.[4] A prominent business magazine highlighted the significant increase in Salik's Ebitda and revenue, equating its performance to a tech startup's exponential growth.
