Dubai's toll operator Salik has posted a full year 2023 net profit of 1.09 billion dirhams ($297 million), 17% lower year-on-year (YoY) despite a jump in the number of revenue generating trips taken through its gates.

The net profit came in slightly below analysts’ mean estimate of AED1.11 billion, according to LSEG data.

Revenue increased 11% to AED2.11 billion as toll usage increased amid a growth in traffic, the company said in a regulatory filing on DFM on Thursday. The number of revenue generating trips through the Salik gates across the emirate rose 12% to 461 million.

Salik listed on the Dubai Financial Market (DFM) last year, following a 20% stake sale.

Comparing profitability from one year to another may not accurately reflect the company's performance on a like-for-like basis, due to changes in its operating structure and cost profile, Salik said.

From July 2022, Salik has been operating as a separate legal entity from Dubai's Roads and Transport Authority (RTA) through a 49-year concession agreement.

In January, the RTA instructed Salik to install two new toll gates on key routes in the emirate to optimise traffic flow and reduce congestion. According to analysts this is expected to add AED120 million to the toll operator's revenue.

(Reporting by Brinda Darasha; editing by Daniel Luiz)