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Stay informed on Salik’s financial performance without spending hours reading reports. The Salik IR Podcast delivers concise, engaging audio summaries of key financial data and trends, straight from the source. Each episode breaks down earnings reports, revenue drivers, and essential metrics, offering clear analysis for investors, analysts, and anyone interested in Salik’s growth and operations.
We leverage AI-powered insights, using Quarterbite by Euroland IR, to transform raw numbers into compelling narratives—making complex financial information accessible and convenient. Please note that episodes are AI-generated and provided for informational purposes only—this is not investment advice.
Whether you're a seasoned investor or simply want to stay up-to-date, this podcast is your essential audio briefing on Salik’s financial health.
Intro: Welcome to the very first episode of the Salik Investor Relations Podcast! We’re kicking things off with a deep dive into our record-breaking performance in the first half of 2025. This is more than just an earnings update—it’s the story of nearly 40% revenue growth, a full 100% profit payout to our shareholders, and the strong momentum behind our expansion. We’ll explore how new toll gates and strategic pricing are driving results, and share a glimpse of the innovative services we’re building beyond the toll booths. Let’s get started.
Speaker 1: Hi Everyone, Let me first quickly introduce Salik. We’re Dubai’s exclusive toll gate operator, and our name actually means seamless mobility in Arabic. Established as a public joint stock company in 2022, we run all of Dubai’s toll gates under a long-term agreement with the RTA. It’s been a dynamic period for us, and today we’re excited to share our results, our forward-looking guidance, and the innovations that are shaping the road ahead.
Speaker 2: Absolutely. The results from the first six months of the year are not just numbers on a page; they tell a story of strategic execution, operational excellence, and the robust economic environment here in Dubai. We'll be covering everything from our core tolling business to the expansion of our ancillary revenue streams, and what this all means for our shareholders and stakeholders. Let's start with the headline figures from our H1 2025 financial performance. The numbers are quite impressive.
Speaker 1: They certainly are. For the first half of 2025, our total revenue saw a substantial increase of 39.5% year-over-year, reaching 1.53 billion AED. This isn't just incremental growth; it's a significant leap forward. This surge in revenue directly translated into strong profitability. Our Ebitda, which is a key measure of operational profitability, grew by an even faster rate of 44.2% to 1.07 billion AED. What's particularly noteworthy is that our Ebitda margin expanded to 69.7%, which speaks volumes about our operational efficiency.
Speaker 2: That margin expansion is a crucial point. It shows that as our revenue grows, our profitability is growing even faster. It’s a clear indicator of the scalability and efficiency of our business model. And of course, this all flows down to the bottom line. Our net profit for the period saw a 41.5% year-over-year increase, reaching 770.9 million. A question that naturally comes up with such strong numbers is, what were the primary catalysts behind this performance?
Speaker 1: An excellent question that gets to the heart of our strategy. The growth was primarily driven by two major strategic initiatives that came into effect. First, the introduction of two new toll gates in November 2024, which have now been fully operational and contributing for the entire period. Second, and just as important, was the implementation of our new variable pricing system. The second quarter of 2025 was the first full quarter operating under this new model, and the results clearly demonstrate its positive impact on both revenue generation and traffic management.
Speaker 2: It’s fascinating to see how those strategic decisions are translating directly into operational results. Let’s look at those operational highlights more closely. The increase in traffic volume was significant. The total number of trips recorded across our network increased by 39.6% year-over-year to 424.2 million. This aligns almost perfectly with the revenue growth, showing a direct correlation. Of those, the total number of chargeable trips reached 318.4 million. How does this increased traffic reflect the broader trends we're seeing in Dubai?
Speaker 1: It’s a direct reflection of Dubai's incredible dynamism. The growth in traffic volume is underpinned by several positive macroeconomic factors. We're seeing a strong inflow of tourism, which brings more vehicles onto the roads. At the same time, Dubai's population continues to grow, meaning more residents are commuting for work and leisure. The new toll gates have been seamlessly integrated into this expanding infrastructure, and the numbers show they are serving their purpose effectively. We also saw our user base expand, with the number of active registered accounts growing by 8.5% year-over-year to 2.7 million, which is a testament to the growing number of people relying on our network every day.
Speaker 2: And when a company delivers such a strong performance, the conversation naturally turns to shareholder returns. The Board of Directors has reviewed these excellent first-half results and made a significant proposal regarding dividends. Could you elaborate on that?
Speaker 1: Of course. This is a key part of our commitment to delivering value to our shareholders. In light of the strong financial health and profitability, the Board has proposed a cash dividend of 770.9 million AED for the first half of 2025. This equates to 0.1028 per share. What’s particularly important here is that this represents a 100% payout of the net profit for the period. This decision underscores the Board's confidence in our financial position, our cash flow generation, and our future prospects. It’s a powerful statement about our commitment to returning capital to those who have invested in our journey.
Speaker 2: A 100% payout of net profit is indeed a strong signal of confidence. This naturally leads us to think about the future. Based on this powerful first-half performance, we've also revisited our expectations for the full year. Can you walk us through the upgraded guidance for 2025?
Speaker 1: Certainly. The momentum from the first half has given us the confidence to revise our full-year guidance upwards. We now expect total revenue growth for 2025 to be in the range of 34-36%. This is a notable increase from our previous forecast of 28-29%. We've also updated our guidance for the Ebitda margin to a range of 68.5-69.5%. This optimistic outlook is firmly grounded in the data from the first six months and our expectation of the sustained, full-year impact of both the new toll gates and the variable pricing system. We believe we are well-positioned to continue this strong performance through the rest of the year.
Speaker 2: Let's analyze the core tolling business a bit more, as it remains the engine of our growth. The variable pricing system implemented on January 31, 2025, was a landmark initiative. Beyond revenue, what was the strategic goal of this system?
Speaker 1: The strategic goal was twofold. While it certainly has a positive impact on revenue, the primary objective was to optimize traffic flow and enhance transportation efficiency across the city. By adjusting pricing during peak and off-peak hours, the system encourages a more balanced distribution of traffic throughout the day, which can help alleviate congestion. The financial results show its effectiveness from a business standpoint, with toll usage fees—our main revenue source—increasing by an impressive 42.3% year-over-year to 1.36 billion AED in the first half. It’s a system that benefits both the company and the city's infrastructure.
Speaker 2: It’s great to see that synergy between business objectives and public benefit. And it wasn't just the usage fees that grew. We also saw healthy growth in other areas of the core business, like revenue from fines and tag activation fees, which grew by 15.7% and 16.2% year-over-year, respectively. This indicates a healthy, growing ecosystem around our core service. But while the core business is thriving, we're also looking ahead and building for the future. Let’s talk about the expansion of our ancillary revenue streams.
Speaker 1: This is an incredibly exciting area for us and a key pillar of our long-term strategy. While our core tolling business is robust, we are actively diversifying to create new avenues for growth. In the first half of 2025, our ancillary revenues reached 8.7 million. We've launched several key initiatives. For example, our partnership with Emaar Malls allows for seamless parking payment solutions at Dubai Mall using Salik accounts. We've also partnered with Parkonic, which is not only innovative but also marks our very first geographic expansion outside of Dubai.
Speaker 2: That expansion with Parkonic is a significant milestone. It demonstrates the potential to leverage our technology and brand in new markets and applications. And there are other partnerships in the pipeline as well, correct?
Speaker 1: That's right. We are building a portfolio of services that add value for our customers. We've partnered with Liva to offer motor insurance solutions, creating a convenient touchpoint for drivers. We also signed a Memorandum of Understanding with Enoc to explore smart payment solutions at petrol stations. Each of these initiatives leverages our core competencies in automated payments and our large customer base. While these streams are still in their early stages, we have outlined significant medium and long-term revenue growth expectations for them. This is about planting the seeds for future growth and evolving Salik into a broader mobility solutions provider.
Speaker 2: It's a clear strategy of building an ecosystem around the driver and their vehicle, which makes perfect sense. Now, none of this growth and expansion would be possible without a solid financial foundation. Could you shed some light on the health of our balance sheet and cash flow situation at the end of H1 2025?
Speaker 1: Absolutely. A strong balance sheet is the bedrock of our company, enabling us to invest in growth and return value to shareholders. As of the end of the first half, our net debt stood at 4.85 billion AED. Crucially, our net debt-to-Ebitda leverage ratio improved to 2.55x. This is comfortably below our debt covenant of 5.0x, giving us significant financial flexibility and headroom. It shows that even as we invest and grow, we are managing our financial position prudently.
Speaker 2: And that financial prudence is also reflected in our cash generation, which is arguably one of the most important indicators of a company's health. How did we perform on that front?
Speaker 1: Our cash generation was exceptionally strong. In the first half of 2025, we generated a free cash flow of 1.11 billion AED. This represents a remarkable 62.4% increase compared to the same period last year. Furthermore, our free cash flow margin improved significantly, rising to 72.8% from 62.5% in H1 2024. This powerful cash flow is what enables us to fund our operations, invest in new technologies and ancillary services, and, as we discussed earlier, pay a substantial dividend to our shareholders. It’s the ultimate testament to the efficiency and profitability of our business model.
Speaker 2: It truly has been a landmark first half of the year. To summarize, we've seen record-breaking revenue and profit growth, driven by strategic initiatives like the new gates and variable pricing. This performance is supported by strong operational metrics and the vibrant economy of Dubai.
Speaker 1: And looking forward, we've raised our guidance for the full year, signaling our confidence in sustained momentum. We're rewarding our shareholders with a significant dividend payout while simultaneously investing in the future through exciting new ancillary revenue streams. All of this is built on a rock-solid balance sheet and powerful cash flow generation. It’s a story of delivering on our promises and building a resilient, future-focused company.
Speaker 2: We encourage you to visit our investor relations website for more detailed information on our H1 2025 results. We look forward to sharing our continued progress with you in the future.
Outro: The key takeaway for investors is clear: Salik’s core business is firing on all cylinders, generating impressive cash that's being returned directly to you. At the same time, the company is planting the seeds for future growth with new ventures in parking and smart payments, creating a powerful combination of present performance and future potential. This podcast is copyrighted by Quarterbite™ and produced by the Euroland IR team. Refer the show notes for disclaimer. For more insights, visit Salik's Investor Relations website and download the Salik IR App from the Play Store or App Store to stay updated with the latest developments. Thank you for listening.