Salik's Nine-Month Profit Falls 8.6% as Fewer Trips Pass Its Dubai Toll Gates

Total revenue fell 6.9% to Dh2.12 billion from Dh2.28 billion a year earlier. Toll usage fees, the core of the business, dropped 10.1% to Dh1.81 billion, and earnings before interest, taxes, depreciation and amortisation fell 8.5% to Dh1.45 billion, according to the results reported by Khaleej Times. Net profit margin narrowed to 49.4% from about 50.3%.

The figures show how the conflict in the region has reached Dubai's road traffic and the cash flows of one of the emirate's most closely watched dividend stocks. Salik's policy is to pay out 100% of net profit as cash dividends, subject to board recommendation and shareholder approval, so lower earnings feed directly into lower payouts.

Total trips through the gates fell 8.1% to 577.8 million in the nine months, from 628.4 million a year earlier. Chargeable trips, the ones that earn fees, fell 10.9% to 419.3 million.

The third quarter brought signs of recovery. Trips rose 4% from the second quarter to 194 million, and the year-on-year decline narrowed to 5% from 12.6% in the second quarter. Chief executive Ibrahim Sultan Al Haddad said September was Salik's busiest month for traffic since February.

Third-quarter net profit was Dh341.1 million, down 8.5% from a year earlier but up 1.9% on the second quarter. Quarterly revenue was Dh705.3 million, 5.7% lower year on year and 3.2% higher than in the previous quarter, with toll usage fees up 5.2% quarter on quarter to Dh607.3 million.

Fines partly offset the drop. Revenue from toll violations rose 6.5% to Dh220.1 million in the nine months, from Dh206.7 million. In the third quarter it rose 4.6% to Dh75.7 million, or 10.7% of the quarter's revenue.

Salik is also leaning on income beyond tolls. Tag activation fees rose 8.5% to Dh37.7 million, and ancillary revenue jumped 82.5% to Dh26.5 million, mainly from its partnership with parking technology company Parkonic. The company plans to expand mobility and digital payment services, including parking payments.

For 2027, Salik forecasts revenue growth of 6% to 8%, citing Dubai's economic development and population growth. It expects an EBITDA margin of 69.5% to 70.5% and a net profit margin of 50.5% to 51.5%.

Net debt stood at Dh4.61 billion at the end of September, down 4% since the start of the year, and active registered accounts rose 5.7% to 2.9 million.