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Tue 16 Nov 2010 10:53 AM

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Dubai Metro operator on track for $8bn global revenues by 2012

UK-based Serco said Middle East operations “contributed significantly” to H1 revenue surge

Dubai Metro operator on track for $8bn global revenues by 2012
What is the role of Serco?

Serco as the concessionaire is responsible for the operations and maintenance of the Red Line and Green Line of Dubai Metro for the first seven years and an option of a further five years.

Serco,
the UK-based operator of the Dubai Metro, said it expected revenues to increase
to about $8bn by the end of 2012, on the back of strong global demand for its
services.

Operating
profit margins are forecast to rise to 6.3 percent by the end of 2012, the
company said in a statement.

“The
strong performance has been driven by high levels of operational delivery,
continued organic growth and good free cash flow. Our financial position
remains strong,” Serco said.

The
company, which signed a five-year, $23m deal in August with Nakheel to operate
the Palm Jumeirah monorail, reported a 9.8 percent rise in global revenue to
£2.14bn ($3.31bn) in the first half of the year.

Operating
profit rose 13 percent to £124.4m ($192.51m) in the first six months of the
year.

The
AMEAA (Australasia, Middle East, Asia and Africa) region represented ten
percent of revenue and surged 37.4 percent to £218m ($337.35m), helped by “significant
contributions” from Serco’s Middle East operations.

Serco
has a $5.4m annual contract to provide air traffic control and airside
engineering services at Dubai World Central – Al Maktoum International, which
opened in June.

The
British firm also won a $16.2m maintenance and consultancy contract for the Al
Mashaaer Al Mugaddassah Metro Southern Line in Makkah and a $2.7m contract to
manage bus operations in Abu Dhabi.

 

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