Salik Company Achieves AED 822 Million Net Profit In First Nine Months Of 2024

Salik Company has reported its financial outcomes for the nine months ending 30th September 2024, showing a net profit after tax of AED822.0 million, marking a 2.4% increase from the previous year. The company recorded 355.6 million revenue-generating trips, a 5.1% rise compared to the same period last year, resulting in total revenue of AED1,640.9 million.

Revenue from toll usage, which makes up 86.7% of Salik's total revenue, grew by 5.1% year-on-year to AED1,422.2 million during this period. In the third quarter alone, toll revenue increased by 5.7% year-on-year to AED468.4 million. The company's profit before tax rose by 12.5% year-on-year to AED903.3 million.

Mattar Al Tayer, Chairman of Salik's Board of Directors, stated that their performance reflects a strong business model and dedication to improving mobility in Dubai. He highlighted the strategic progress made in the third quarter with the launch of a parking partnership with Emaar at Dubai Mall, aimed at diversifying revenue streams.

The third quarter saw Salik's profit after tax grow by 8.8% year-on-year to AED277.3 million. The company also achieved an EBITDA of AED1,115.0 million, which is an increase of 8.9% compared to the previous year.

Ibrahim Sultan Al Haddad, CEO of Salik, noted that their strong third-quarter performance boosted results for the nine-month period ending September 2024. He expressed confidence in achieving a revenue growth of 7-8% for FY24 compared to FY23 due to typically stronger fourth-quarter performance.

Salik plans to start operations at the Business Bay Crossing and Al Safa South gates on 24th November as part of RTA's strategy to enhance Dubai's road networks and public transport services.

The number of registered active accounts increased by 7.1% year-on-year to approximately 2.5 million in the first nine months of 2024 from around 2.3 million during the same period in 2023.

The CEO also anticipates continued growth momentum into next year with an expected increase in revenue-generating trips by about 24-25% in FY25, including contributions from new gates.

With inputs from WAM