12/05/2026 03:57 AST
Salik Company, Dubai's sole toll gate operator, said on Monday that fines reached Dh69.1 million in the first quarter of 2026, up just 1 per cent compared to the same period last year, as total chargeable trips declined in March due to softer traffic following the regional conflict.
The Dubai-listed company said its net profit for the first quarter of 2026 remained broadly stable at Dh369.3 million amid a more moderate operating environment in March caused by the regional military conflict.
Total revenue for Q1 2026 stood at Dh728.9 million, a 3.0 per cent year-on-year decline, reflecting lower toll usage fees due to softer traffic trends during the quarter resulting from the exceptional event that impacted March performance. This was partially offset by growth in tag activation fees and other revenue streams.
The toll gate operator said fines contributed 9.5 per cent of total Q1 2026 revenue, compared to 9.1 per cent in the 2025 financial year.
Total chargeable trips reached 145.7 million in Q1 2026, a 7.7 per cent year-on-year decline compared to Q1 2025. Chargeable trips during the peak period (Dh6) totalled 53.7 million, while trips during the off-peak period (Dh4) reached 75.9 million.
Schools shifted to remote learning, while offices asked employees to work from home following the outbreak of the regional military conflict for safety reasons, resulting in softer traffic during March.
Toll usage fees totalled Dh625.5 million in Q1 2026, representing a 6.0 per cent decline, primarily due to softer traffic trends during the quarter, partially offset by the continued impact of the variable pricing mechanism introduced in late January 2025.
"Q1 2026 results reflect Salik's ability to deliver resilient performance amid a challenging operational environment, reaffirming the strength and flexibility of the company's business model, anchored in recurring revenues and the essential nature of our traffic infrastructure within the Emirate of Dubai, alongside continued commitment to sustainable long-term value creation for our shareholders," said Mattar Al Tayer, Chairman of Salik.
Ibrahim Sultan Al Haddad, CEO of Salik, said the company overcame "challenging conditions" caused by the regional geopolitical conflict.
"Despite the slowdown in traffic volumes since the beginning of March, the business continued to demonstrate healthy underlying profitability, cash generation, and disciplined financial performance, recording a strong EBITDA margin of 69.6 per cent during the quarter.
"In this context, Salik remains well positioned through the defensive characteristics of its core business, strong margins, and cash-generative profile, while continuing to execute on long-term growth opportunities across the mobility ecosystem. As conditions gradually stabilise, we remain confident in the strength of the business's underlying fundamentals and in our ability to return to a more normalised operating trend over time," he added.
The total number of trips, including discounted trips, made through Salik's toll gates fell 6.4 per cent to 197.2 million in Q1 2026, reflecting a more moderate traffic environment amid evolving regional market dynamics in March.
Tag activation fees increased 6.1 per cent in Q1 2026 to reach Dh12.2 million, supported by an 8.4 per cent year-on-year increase in registered active vehicles.
Total ancillary revenue grew 147 per cent to Dh8 million during Q1 2026, driven by revenues from Parking Payment Solutions partnerships with Emaar Malls, Parkonic, and Dubai Airports.
Khaleej Times
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