Dubai road toll operator Salik has recorded a nearly 9 per cent rise in its third-quarter profit after tax, underpinned by a growth in revenue-generating trips that are expected to rise further next year.
This is also expected to help boost the company's bottom line, alongside the opening of two new toll gates this month.
Net profit in the three months until the end of September climbed 8.8 per cent annually to Dh277.3 million ($75.5 million), the company said on Wednesday in a filing to the Dubai Financial Market, where its shares trade.
Revenue for the quarter increased 7.3 per cent to Dh546.1 million, with earnings before interest, taxes, depreciation and amortisation (ebitda) jumping 14 per cent to Dh376.7 million. Toll use revenue rose 5.7 per cent annually to Dh468.4 million, while revenue from fines and penalties in the third quarter rose almost 8 per cent to Dh58.7 million. The number of net violations grew 0.8 per cent to hit about 670,000 during the quarter.
For the first nine months of the year, net profit was up 2.4 per cent annually at Dh822 million, with revenue 6.2 per cent higher at Dh1.64 billion. Toll use revenue grew 5.1 per cent on an annual basis to Dh1.42 billion.
Fines and penalties grew 7.6 per cent to Dh174.8 million, contributing 10.7 per cent to the total revenue during the period, while ebitda leapt nearly 9 per cent to Dh1.12 billion.
The growth in Salik's financials was underpinned by revenue-generating trips – net toll traffic minus fines and unreconciled transaction trips – which grew 5.7 per cent year-on-year to 117.1 million in the September quarter. For the nine months to September, that figure grew 5.1 per cent to 355.6 million. Revenue-generating trips are the driver for Salik's toll fees revenue and constitute the bulk of its overall revenue.
The company said it expects revenue-generating trips to grow 7 per cent to 8 per cent this year, which would then surge by as much as 25 per cent in the next fiscal year, especially with the opening of its new toll gates at Business Bay Crossing and Al Safa South, where operations are to begin on November 24.
The new gates are a “continuation of the RTA’s strategic plan” to enhance road networks and public transport lines, as well as improve the flow of traffic within Dubai, said Salik chairman Mattar Al Tayer.
The quarter also includes the first full three-month performance of Salik's barrier-free parking system at Dubai Mall, contributing Dh2.57 million from 3.8 million transactions.
This is part of the company's “strategic progress” and “commitment to enhancing mobility in Dubai … a key initiative to diversify our revenue base that is already contributing positively to our financial performance”, Mr Al Tayer said.
Salik was established as a public joint stock company in June 2022. Since July 2022, it has been operating as a separate legal entity from the Roads and Transport Authority through a 49-year concession agreement.
The company was part of Dubai's plans to list state-owned companies to increase the size of the DFM to about Dh3 trillion, and to encourage the listing of more private companies from sectors such as energy, logistics and retail.
“We remain encouraged by positive trends in Dubai’s economy, which are supportive of our own growth,” said Ibrahim Al Haddad, chief executive of Salik.
Salik's shares were up about 0.2 per cent at Dh5.11 in noon trading in Dubai.
War on waste
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
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Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
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How does ToTok work?
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Chelsea 4
Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)
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Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55)
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Tomorrow 2021
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• Round up: Experts share their visions of the world to come
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Towering concerns
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
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2pm Handicap Dh 90,000 1,800m
2.30pm Handicap Dh120,000 1,950m
3pm Handicap Dh105,000 1,600m
3.30pm Jebel Ali Classic Conditions Dh300,000 1,400m
4pm Maiden Dh75,000 1,600m
4.30pm Conditions Dh250,000 1,400m
5pm Maiden Dh75,000 1,600m
5.30pm Handicap Dh85,000 1,000m
The National selections:
2pm Arch Gold
2.30pm Conclusion
3pm Al Battar
3.30pm Golden Jaguar
4pm Al Motayar
4.30pm Tapi Sioux
5pm Leadership
5.30pm Dahawi
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Turning%20waste%20into%20fuel
Explained
On Women's Day
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General%20Classification
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
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National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
The biog
Name: Gul Raziq
From: Charsadda, Pakistan
Family: Wife and six children
Favourite holes at Al Ghazal: 15 and 8
Golf Handicap: 6
Childhood sport: cricket
The%20specs
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Part three: an affection for classic cars lives on
Read part two: how climate change drove the race for an alternative
Read part one: how cars came to the UAE
