DUBAI (WAM)

Salik Company on Wednesday announced its financial results for the nine-month period ended September 30, 2024, registering a robust net profit after tax of Dh822.0 million, up 2.4 per cent YoY.

Salik continued to deliver strong financial performance during the first nine-months of 2024, registering 355.6 million revenue-generating trips, which increased 5.1 per cent YoY to drive total revenue of Dh1,640.9 million.

Salik also reported EBITDA of Dh1,115.0 million, up 8.9 per cent YoY, and profit before tax of Dh903.3 million, up 12.5 per cent YoY.

Revenue from toll usage, comprising 86.7 per cent of total revenue, rose 5.1 per cent YoY to Dh1,422.2 million in the nine-month period, with third quarter revenue from tolls increasing 5.7 per cent YoY to Dh468.4 million.

The company's third quarter profit after tax increased by 8.8 per cent YoY to Dh277.3 million.

It also posted 5.1 per cent YoY growth in revenue-generating trips in nine-months of 2024, reaching 355.6 million.

Mattar Al Tayer, Chairman of the Board of Directors of Salik, said, "Our performance in the first nine-months of 2024 is a testament to our robust business model and commitment to enhancing mobility in Dubai. 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.”

“On November 24, we will be commencing operations of the Business Bay Crossing and Al Safa South gates. The launch of the two new gates is a continuation of the RTA's strategic plan, aimed at enhancing road networks and facilities, public transport lines and services with the aim of improving the flow of traffic across the Emirate of Dubai, further strengthening Dubai's position as a leading global destination."

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented, "Our results for the nine-month period ended September 30, 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.

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."

Registered active accounts increased 7.1 per cent YoY to c.2.5 million in the nine months of 2024 from c.2.3 million in the nine-month period of 2023.