Toll operator Salik targets 10% revenue rise in 2023

Salik

Dubai road toll operator Salik expects revenue-generating trips to grow by up to 10 percent in 2023 year on year as a result of continued strong growth in tourism and residency.

The company’s net profit rose 5.3 percent to AED255 million ($69.43 million) in the third quarter of 2023 from AED242 million a year earlier despite higher net finance costs given the evolving interest rate environment.

The company secured an AED500 million short-term deposit in the third quarter to lessen the impact of rising profit rates on finance costs.

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Revenue rose 14.2 percent to reach AED509 million during the quarter.

Toll usage revenue from the company’s eight toll gates, which represents 87.1 percent of total income, reported the highest third-quarter performance since Salik commenced operations in 2007, rising 14.6 percent year on year.

Nine-month profit declined 22.7 percent year on year to AED803 million.

However, Salik stated that a nine-month profitability comparison might not accurately reflect its performance on a like-for-like basis, due to changes in its operating structure and cost profile.

Revenue over the nine-month period increased 11.2 percent to AED 1.54 billion on Dubai’s continued attraction to tourists and growing commercial activities. Toll usage fee was up 12 percent year on year.

Vehicle registration with Salik increased 8.8 percent year on year to 3.9 million in the year to September. Meanwhile, registered active accounts rose 13 percent year on year to 2.4 million.

Salik approved a cash dividend of AED548 million in August for the first half of 2023.