NLEX Corporation reported a strong financial performance in the first half of 2024, with net income surging by 24% to ₱5.6 billion, up from ₱4.51 billion during the same period last year. Increased toll revenues, higher traffic volumes, and effective cost-management strategies drove this significant growth.
NLEX Corp.’s Performance Overview
The company’s total revenues grew by 20% to ₱12.4 billion, compared to ₱10.33 billion in the same period in 2023. Higher traffic on its expressways, toll rate adjustments, and contributions from the newly opened NLEX-SLEX Connector Road contributed to this revenue increase. The rise in vehicle numbers on its toll roads played a crucial role in pushing revenue higher, complemented by the company’s infrastructure expansions and rate increases.
Toll Roads as Key Revenue Drivers
NLEX and SCTEX accounted for 99% of the company’s total revenues.
- Class 1 vehicles saw an 18% revenue growth.
- Class 2 vehicles grew by 23%.
- Class 3 vehicles rose by 21%.
These increases highlight the impact of toll adjustments and growing vehicle use on both expressways.
Average daily traffic on NLEX reached 336,993 vehicles, marking a 4% increase year-on-year, while SCTEX reported an average of 81,618 vehicles daily, up 1% from the previous year. The introduction of the NLEX-SLEX Connector Road significantly contributed to the rise in traffic volume and provided an additional revenue stream.
Cost Management and Non-Toll Revenues
Non-toll revenues, which include fees from service facilities and utility companies utilizing NLEX rights of way, account for 1% of total revenues. The company’s total cost of services grew by 19%, amounting to ₱4.5 billion, up from ₱3.8 billion a year earlier. Despite rising costs, NLEX Corp.’s effective cost management has supported its strong financial results.
Overall, NLEX Corp.’s performance highlights the crucial role of toll rate adjustments, traffic growth, and infrastructure expansion in driving profitability.
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