(MENAFN- Khaleej Times) Published: Mon 13 May 2024, 10:39 AM
Last updated: Mon 13 May 2024, 12:23 PM
Salik Company PJSC, Dubai's exclusive toll gate operator, saw 122.8 million cars passed through its eight toll gates from January to March this year, resulting in Dh562 million first quarter revenue, up by 8.1 per cent in the same period last year.
The company released its Q1 2024 revenues on Monday.
During the first quarter of 2024, Al Maktoum Bridge gate saw the number of revenue-generating trips (excluding paid taxi trips) increase 49.0 per cent YoY (year on year), due to the ongoing closure of the nearby Floating Bridge and diversion of traffic through the gate.
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Al Garhoud Bridge, similarly, saw the number of revenue-generating trips (excluding paid taxi trips) increase 9.1% YoY. Excluding both Al Maktoum and Al Garhoud Bridges, Salik's revenue-generating trips increased 5.3% YoY in the first quarter.
Growth remained strong across several gates in the first quarter, with Jebel Ali seeing double digit growth (+c12%), and other gates growing in the high-single digit range, including Airport Tunnel and Al Mamzar North (+c.8%).
Two new toll gates
Full year 2024 revenue-generating trips are expected to increase between 4 and 6 per cent. Business outlook is also upbeat with the introduction of two new toll gates in Dubai – Business Bay Crossing and Al Safa South gates – that are expected to be operational by the end of November this year.
Salik is also building its ancillary revenue streams, with the use of barrier-free paid parking system that should be operational by third quarter of 2024 at Dubai Mall.
Salik is likewise looking into“enriching offerings that are payable directly through Salik accounts, alongside other ancillary revenue streams, including advertising and the potential monetisation of data with mobility players".
Ibrahim Sultan Al Haddad, CEO of Salik, said:“We continue to thrive in our core tolling business and remain focused on diversifying our portfolio through the expansion of ancillary revenue streams.
“The first quarter marked a period of strategic progress, having announced an expansion of our toll gate network through the addition of two new gates in Dubai, which we plan to be operational by November of this year. This follows the diversification into parking management solutions through our partnership with Emaar Malls, as announced at the end of 2023. Both strategic milestones are exciting developments for our business, placing Salik in a position of strength going forward,” he underscored.
Salik noted they“are mindful of the continued closure of the Floating Bridge, which has increased traffic through the Al Maktoum Bridge toll gate and are assessing the potential positive impact on full year financials should the bridge remain closed for longer than originally expected.”
January-March financial summary
Toll usage fee revenues increased 8.1 per cent to Dh491 million in the first quarter of 2024.
Revenues from fines increased by 6.4 per cent to Dh59 million, also up 8.6 per cent versus Q4 2023. The number of net violations (accepted minus dismissed violations) grew 8.2 per cent in Q1 2024, having reached 683,000.
Tag activation fees grew in the first quarter, with revenue from tag activation fees increasing by 13.6 per cent to AED 10 million.
Salik achieved a growth in net profit before taxes of 10.9 per cent, reaching Dh304.5 million during the first quarter of 2024. Despite the implementation of the 9 per cent corporate tax, Salik maintained a growth of 0.7 per cent in its net profits after tax to reach a net profit of Dh277 million.
The Company will update its financial outlook at the time of the half year results when evaluation of the financial impact of the new toll gates will also be more advanced.
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