Salik Profit Falls 8.6% To Dh1.05 Billion Despite 6.5% Rise In Fines Revenue To Dh220 Million

(MENAFN- Khaleej Times) Salik reported an 8.6 per cent decline in net profit to Dh1.05 billion during the first nine months of 2026, as lower traffic volumes weighed on earnings, even as revenue from toll violations rose 6.5 per cent to Dh220.1 million.

The Dubai-listed toll gate operator said fines revenue increased from Dh206.7 million in the corresponding period last year. During the third quarter alone, revenue from violations rose 4.6 per cent to Dh75.7 million, accounting for 10.7 per cent of the company's quarterly revenue.

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Despite the increase in fines revenue, Salik's total revenue declined 6.9 per cent to Dh2.12 billion, compared with Dh2.28 billion a year earlier, as fewer vehicles passed through its toll gates following regional developments earlier in the year.

Revenue from toll usage fees fell 10.1 per cent to Dh1.81 billion, while earnings before interest, taxes, depreciation and amortization (Ebitda) dropped 8.5 per cent to Dh1.45 billion.

The company's net profit margin narrowed to 49.4 per cent, compared with approximately 50.3 per cent a year earlier.

Toll traffic declines

Total trips through Salik's toll gates fell 8.1 per cent to 577.8 million during the nine-month period, compared with 628.4 million in the same period of 2025.

Chargeable trips declined 10.9 per cent to 419.3 million, reflecting changes in traffic patterns following regional developments that began in late February.

However, traffic showed signs of recovery during the third quarter, with total trips increasing 4 per cent compared with the previous quarter to 194 million.

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, said September was the company's busiest month for traffic since February.

The annual decline in total trips narrowed to 5 per cent in the third quarter, compared with 12.6 per cent in the second quarter.

Third-quarter performance improves

Salik recorded a net profit of Dh341.1 million during the third quarter, down 8.5 per cent year-on-year but up 1.9 per cent from the previous quarter.

Quarterly revenue reached Dh705.3 million, a decline of 5.7 per cent compared with last year, although it increased 3.2 per cent from the second quarter.

Revenue from toll usage fees increased 5.2 per cent quarter-on-quarter to Dh607.3 million.

Meanwhile, tag activation fees rose 8.5 per cent to Dh37.7 million during the first nine months, while ancillary revenue jumped 82.5 per cent to Dh26.5 million, mainly supported by the company's partnership with parking technology provider Parkonic.

Outlook for 2027

Salik expects revenue to grow between 6 and 8 per cent in 2027, supported by Dubai's economic development and population growth.

The company forecasts an Ebitda margin of between 69.5 and 70.5 per cent and a net profit margin of 50.5 to 51.5 per cent next year.

Salik also plans to expand its mobility and digital payment services, including seamless parking payments.

The company ended September with net debt of Dh4.61 billion, down 4 per cent since the beginning of the year, while active registered accounts increased 5.7 per cent to 2.9 million.

Salik's dividend policy provides for cash distributions equivalent to 100 per cent of net profit, subject to board recommendation and shareholder approval.

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