By Stefano Bernabei

ROME (Reuters) - Italian toll-road operator Atlantia (ATL.MI: Quote, Profile, Research) reported a 4 percent increase in 2007 gross operating profit, boosted by higher traffic on Italian highways.

Atlantia, formerly known as Autostrade, also said on Friday it was close to clinching a highway contract in Slovakia worth $965 million.

The company reported earnings before interest, tax, depreciation and amortization (EBITDA) of 2.07 billion euros ($3.23 billion), up from 1.98 billion the year before.

It reported a net profit of 381 million euros, including a charge for net deferred tax assets. Excluding that charge, the company reported a profit of 695 million euros. Revenues rose 4 percent to 3.27 billion.

The company said it would propose a dividend of 0.68 euros per share.

Traffic on its highway network had risen more than 1 percent in the first two months of this year, lower than the 2.3 percent average rise last year, Chief Executive Giovanni Castellucci told analysts on a conference call.

Looking ahead, Atlantia said toll tariffs in 2009 would grow in line with the 3.6 percent rise it took in this year.

Atlantia shares closed up 2 percent at 19.96 euros in Milan. They have fallen 25 percent in the past three months, underperforming the broader pan-European highways and railtracks sector which fell 10 percent in the same period.