Salik nine-month profit tops Dh1 billion, Q3 trips rebound 4%
Dubai toll operator holds 49.4% net margin and guides for 6% to 8% revenue growth in 2027
Salik, Dubai’s exclusive toll gate operator, earned a net profit of Dh1.04 billion in the nine months ending September 30. This is a slight drop of 8.6 per cent from the previous year. The company announced its financial earnings on November 13. Revenue fell 6.9 per cent to Dh2,117.3 million. However on a quarter-on-quarter basis, revenue, EBITDA and net profit all improved.
Q3 revenue rose 3.2 per cent from the Q2 to Dh705.3 million. The year-on-year decline narrowed to 5.7 per cent from 11.9 per cent. EBITDA reached Dh474.0 million, up 1.2 per cent sequentially. Net profit came in at Dh341.1 million in Q3, 1.9 per cent higher.
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Traffic on roads recover
Margins too came under pressure. The Q3 EBITDA margin fell to 67.2 per cent from 69.4 per cent a year earlier. The company highlighted the incurrence of a concession fee that rose to 23.1 per cent. It also listed higher operating, maintenance and staff costs, software spending and provider commissions, all spread across a smaller revenue base.
Toll usage fees, the core earner, totalled Dh1.809 billion, down 10.1 per cent. The Q3 shortfall against last year narrowed to 7.3 per cent from 16.5 per cent. Fines added Dh220.1 million, up 6.5 per cent. Tag activation fees rose 8.5 per cent to Dh37.7 million.
Ancillary revenue jumped 82.5 per cent to Dh26.5 million. The Parkonic parking partnership drove most of the gain. The company noted that Traffic is recovering post the crisis that has hit the region since February. It reported that Q3 trips touched 194 million, up 4 per cent versus Q2. Peak-hour trips ran 2 per cent above last year over nine months. September was the busiest month since February.
Ibrahim Sultan Al Haddad, chief executive, points to cash generation. “Cash generation strengthened markedly,” he notes. Net debt to EBITDA fell to 2.29 times from 2.45 times at the end of Q2, well inside the 5 times covenant. That gives Salik “considerable flexibility to pursue its growth priorities,” he adds.
Mattar Al Tayer, chairman, credits the business model. The results “reflect the strength of its business model, operational efficiency, and ability to capitalize on Dubai’s rapid economic and urban growth,” he said.
Growth plans lean on Dubai’s expansion. Al Haddad flags a population projected to reach 5.8 million by 2040. The Dubai 2040 Urban Master Plan expands five urban centres, three of them near Salik’s Sheikh Zayed Road gates.
Forward guidance for 2027
Salik also renewed its technology partnership with TransCore for five years in September. Seamless parking payments went live at Dubai Harbour’s Harbour West Car Park under an agreement with Shamal. The company employed 63 full-time staff in Q3, 21.2 per cent more than a year earlier. Emiratisation reached 31.8 per cent.
For 2027, Salik expects revenue to grow 6 to 8 per cent. It targets an EBITDA margin of 69.5 to 70.5 per cent. The company expects a lower concession fee under the inflation protection mechanism, partly offset by inflation-driven cost increases.
Net profit margin guidance sits at 50.5 to 51.5 per cent. Salik plans to distribute 100 per cent of net profit as cash dividends, subject to Board recommendation and AGM approval.
