Dubai toll operator Salik reported a marginal increase of 0.7% year-on-year (YoY) in net profit to 277 million dirhams ($75.42 million) for the first quarter of 2024 following the implementation of the 9% corporate tax.

The company posted an annual growth of 10%, or AED 304.5 million, in net profit before taxes.

Revenue rose 8% YoY to AED 562 million, driven by growth in the number of trips.

The total number of trips, including discounted trips, made through Salik’s eight toll gates grew by 6.2% YoY in the first quarter. 

Revenue-generating trips reached 122.8 million, up 8.1% YoY, the highest first-quarter revenue-generating trips since inception.

The concession fee reduction from 25% to 22.5% of the toll usage revenues by the Roads and Transport Authority (RTA) came into effect from April 1 2024. 

The lower cost structure is expected to positively impact Salik’s financial performance from the second quarter of 2024 onwards.

(Editing by Seban Scaria seban.scaria@lseg.com )