Dubai toll operator Salik reported a 16 per cent jump in its fourth-quarter profit on revenue growth driven by an increase in fines and an introduction of more toll gates.
Profit for three months to the end of December climbed to Dh342.5 million ($93.26 million), the company said in a statement on Tuesday to the Dubai Financial Market, where its shares are traded.
Revenue for the period rose 15.6 per cent annually to Dh651 million ($177 million) as trips by motorists through Salik gates rose 15.8 per cent year-on-year, to Dh142.6 million. Salik introduced two more toll gates in November, at Business Bay Crossing in Al Khail Road and at Al Safa South in Sheikh Zayed Road.
Revenue from fines also increased 14.5 per cent annually, to Dh62.1 million, as the number of net violations rose 5.4 per cent to 730,000. Net violations during the fourth quarter represented 0.4 per cent of net toll traffic, and toll usage revenue grew 15.7 per cent to Dh570.2 million amid the continued inflow of tourists to the emirate and increased of movement, the company said.
“With this growth, we see promising opportunities to continue to increase and diversify our revenues, enhance our financial returns, and contributing to the long-term sustainability of our business,” said Mattar Al Tayer, chairman of the board of directors of Salik.
The company’s full-year profit grew 6 per cent annually to Dh1.16 billion, as revenue jumped 8.7 per cent to Dh2.29 billion. Its total assets as of the end of last year reached Dh7.98 billion, up about 53 per cent annually.
The company revised its revenue guidance for the full year upwards to 28 per cent-29 per cent, compared to its previous guidance of 25 per cent-26 per cent, amid the introduction of the new Salik gates and variable pricing in January.
Motorists will be charged Dh6 during peak hours between 6am and 10am and from 4pm to 8pm, and Dh4 during off-peak hours between 10am and 4pm and from 8pm to 1am.
The company's board of directors proposed a dividend of Dh619.8 million to be paid during first half of 2025 in light of the strong financial performance.
The Salik system was introduced in 2007 to ease traffic congestion, raise state revenue and encourage residents to use public transport. The first two gates were installed in Gharoud and Barsha, with Safa and Maktoum bridge gates added a year later. In 2013, three more were introduced at Airport Tunnel, and two at Mamzar – south and north. In 2018, the Jebel Ali gate was introduced. Motorists are charged to pass through each gate, with the amount deducted automatically from tags fixed to windscreens.
