Dubai’s Salik reports Dh822M 9 month profit, fine revenue reaches Dh174.8M
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Dubai’s toll operator, Salik Company PJSC, reported a robust Dh822 million profit in Q3 2024, with the company achieving its highest-ever third-quarter EBITDA of Dh376.7 million, a 14% year-on-year increase from Dh330.4 million in Q3 2023.
In the first nine months of 2024, Salik recorded a net profit before taxes of Dh903.3 million, reflecting a 12.5% rise compared to the previous year, while third-quarter profit before tax grew by 19.6% year-on-year to Dh304.7 million.
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, said, “Our results for the nine-month period ended 30 September 2024 were bolstered by strong performance in the third quarter, with revenue-generating trips increasing 5.7 per cent year-on-year, along with very robust profitability. With our inaugural parking solution at Dubai Mall now in full swing, and the operation of the two new toll gates starting on November 24 2024, we remain encouraged by positive trends in Dubai’s economy, which are supportive of our own growth".
In the third quarter, revenue grew by 6.2% year-on-year, driven by increased toll usage, fines, and tag activation fees. The toll operator registered 355.6 million trips in the first nine months of 2024, marking a 5.1% year-on-year increase in revenue-generating trips. Q3 revenue from toll usage fees rose by 5.1%, with Jebel Ali’s toll gates seeing a 16% rise, and other gates such as Airport Tunnel and Al Safa showing growth of approximately 9% and 7%, respectively.
Fines contributed significantly to Salik’s Q3 revenue, with a 7.9% increase bringing the total to Dh58.7 million. Year-to-date, revenue from fines reached Dh174.8 million, a 7.6% increase from the previous year, with fines making up 10.7% of total revenue. Net violations in Q3 accounted for 0.4% of total toll traffic.
Tag activation fees also showed strong growth, contributing 1.8% to total revenues over the nine-month period. Revenue from these fees increased by 23.3% year-on-year to Dh30.1 million, with Q3 alone seeing an 11.3% rise to Dh10.3 million.
"On this basis, we are pleased to reiterate our recently upgraded guidance for FY24, expecting revenue growth to increase by 7-8 per cent compared to FY23, particularly in view of Q4 typically being a seasonally stronger quarter for Salik. 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 per cent in FY25, including the contribution from the two new gates,” Al Haddad also said.
The two new Salik toll gates, Business Bay gate and Al Safa South gate, will become operational on Sunday, November 24. The Business Bay gate on Al Khail Road and Al Safa South gate on Sheikh Zayed Road will bring Salik’s total toll gates in Dubai to ten. These new gates aim to enhance traffic flow, particularly at Business Bay Crossing, a major route used by motorists from Sharjah and other key areas to access Al Khail Road, one of Dubai's busiest roads.