Dubai: The Dubai toll-gate operator Salik’s 9-month net profit pushed higher to Dh822 million from Dh802.7, riding on revenues of Dh1.64 billion (from Dh1.54 billion a year ago).
The number gains will further please shareholders, who have been backing the Salik stock strongly, with two more toll gates in Dubai all set to go live later this month. The gates - opening November 24, which is a Sunday - will have an immediate revenue lift for Salik, with Q1-2025 set to offer more evidence of this. These are on two of Dubai's busiest routes - at the Business Bay Crossing on Al Khail Road and Al Safa South on Sheikh Zayed Road.
The revenue gain for Salik in 2025 could be in the range of 24-25%, with the new openings playing their part.
On the 9-month run, "Despite the impact of the new 9% UAE corporate tax, Salik sustained a robust net profit after tax of Dh822 million, up 2.4% year-on-year, and Dh277.3 million in the third quarter, up 8.8%," said a statement.
On DFM, the Salik stock is trading at Dh5.1. It's up more than 60% so far this year.
The higher growth in Q3-24 attests to the higher traffic on Dubai roads after summer, with the busy season kicking off in earnest from September.
The Dubai Mall presence
From July, Salik also had visibility at The Dubai Mall, where it oversees the paid parking services. "We made further strategic progress in the third quarter, having officially launched our parking partnership with Emaar to provide parking solutions at Dubai Mall, a key initiative to diversify our revenue base that is already contributing positively to our financial performance," said Mattar Al Tayer, Chairman of Salik.
On track for higher full-year growth
For full year 2024, Salik is 'expecting revenue growth to increase by 7-8% compared to FY23, particularly in view of Q4 typically being a seasonally stronger quarter'. "We also expect this good growth momentum to continue into next year, with revenue-generating trips expected to increase in the range of 24-25% in FY25, including the contribution from the two new gates," said the CEO Ibrahim Sultan Al Haddad.
9-month run
Salik's toll usage fees from the first nine months of 2024 increased by 5.1% to Dh1.42 billion. "The strong growth remains supported by the inflow of tourists and increased movement of individuals across Dubai, with third-quarter toll usage fee revenues increasing 5.7% to Dh468.4 million."
When it comes to fines, the year-on-year gains were 7.6% to Dh174.8 million, with the third quarter alone contributing Dh58.7 million, up 7.9%. The number of net violations (accepted minus dismissed violations) was around 670,000.
