Strong Profit Growth in Q3 2024
Salik, the toll-gate operator of Dubai witnessed 9% net profit growth for Q3 2024 at AED 277.3 million, which was approximately $76 million in value. The company’s Q3 business continued to perform strongly, with its net profit higher than the expectation from the analysts’ average, which was recorded as AED 273.2 million through the LSEG.
PC: Gulf News
Comparative Revenue Growth: Revenue growth versus Q3 Last Year
Third-quarter revenues for Salik grew by 8.4 per cent to AED 546 million as compared to the corresponding period of last year at AED 505.8 million. It reflects the success of the toll operator in extracting value from the ever-changing dynamics of the city’s traffic flow and the expansion of the infrastructural base. Even as Dubai continued its focus on infrastructure and mobility solutions, Salik has ensured increased volumes of vehicles and road usage, thereby giving a boost to the impressive revenue performance.
FY 2025 Guidance: New Gates to Fuel 25-26% Revenue Growth
Salik has announced its earnings outlook for the fiscal year 2025, forecasting a year-over-year revenue growth between 25% and 26%. This optimistic projection reflects the anticipated financial impact of two new toll gates scheduled to become operational on November 24, 2024. The introduction of these new toll gates aligns with Dubai’s recently updated policy focused on enhancing its road infrastructure and traffic management system. Salik expects that these new additions to its toll network will contribute to a steady rise in revenue in the coming years, reflecting the city’s commitment to improving traffic flow and road efficiency.
Stable Outlook for FY 2024
Salik’s outlook for FY 2024 remains stable, and no adjustments were made to its initial guidance. The company expects total revenue and revenue-generating trips to growth within a 7-8% range for the year. This forecast reflects Salik’s confidence in sustaining stable growth despite external economic factors as Dubai’s infrastructure investments and urban expansion support operations.
Salik’s impressive performance in Q3 2024, along with its optimistic outlook for FY 2025, clearly highlights the company’s importance within Dubai’s transportation ecosystem. The positive results emphasize Salik’s strategic role in managing traffic flow while driving financial growth in the region. Looking ahead, the company’s plans to expand with new toll gates are set to further strengthen its revenue growth, underlining its commitment to enhancing Dubai’s transport infrastructure.
