Parkin reports strong Q3 growth with 25% revenue increase

Paid public parking provider Parkin Company has reported robust financial and operational results for Q3 and the period ranging from January to September, achieving significant growth in key performance metrics.

The company’s total revenue for the quarter surged by 25 per cent year-over-year to Dhs239.2m, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) soared by 40 per cent to Dhs146.8m, raising the EBITDA margin to 61 per cent from 54 per cent in Q3 2023.

Despite the recent introduction of a 9 per cent corporate tax, the company maintained strong profitability, posting a net profit of Dhs104.7m, a 5 per cent year-on-year increase.

These results reflect the company’s strategic focus on revenue diversification, infrastructure growth, and expanding its technological and service capabilities.

Parkin Q3 growth drivers

The company’s core revenue streams showed notable increases, particularly in public parking revenues, developer parking, and seasonal card sales. Public parking transactions rose by 16 per cent, with over 91 per cent of these being cashless, marking the company’s growing alignment with digital payment trends.

Ahmed Bahrozyan, chairman of Parkin’s board, highlighted the importance of the company’s contributions to Dubai’s infrastructure, stating, “Parkin’s performance underscores our role in supporting Dubai’s transport ecosystem. As Dubai’s population and car ownership grow, we are committed to expanding our vision of delivering seamless, innovative mobility solutions.”

Segment analysis

1. Public parking: The public parking segment, the company’s primary revenue driver, saw a 3 per cent increase in available spaces, reaching 179.6k by the end of Q3 2024.

The utilisation rate improved by 2.7 percentage points, reflecting rising demand and enhanced operational efficiency.

2. Developer parking: Developer parking spaces grew by 42 per cent, largely due to new partnerships and the phased introduction of spaces in Dubai’s private developer areas.

Total developer spaces rose to 24.5k, supported by new agreements signed in early 2024.

3. Multi-storey car parks (MSCPs): MSCP spaces experienced a 22 per cent reduction, down to 3.2k spaces, due to structural changes, including the demolition of the Sabkha car park and repairs at Al Rigga.

The company expects Al Rigga to reopen in Q4 2024, restoring access to 500 MSCP spaces.

4. Seasonal permits and enforcement: Seasonal permit sales increased 34 per cent to 37.4K, and fines issued surged by 48 per cent, reaching 418.1K. These reflect improved enforcement and demand for long-term parking solutions.

Strategic partnerships

In line with its diversification strategy, the company entered into multiple agreements post-Q3 2024, including:
– Skyports Infrastructure: To explore drone delivery facilities in Dubai.
– SAAED Traffic Systems and Charge&Go by e&: These partnerships will bolster Parkin’s portfolio and improve services for users.
– Majid Al Futtaim Properties: A five-year, fixed-price contract for barrierless parking solutions across three malls.

CEO Engineer Mohamed Al Ali emphasised the company’s focus on profitable growth, stating, “We are leveraging our technological advancements and partnerships to expand beyond core public parking, demonstrating our commitment to sustainable, long-term shareholder value.”

The company remains on track to meet its FY 2024 guidance for revenue, EBITDA, and net profit. It anticipates further growth as it leverages its strategic partnerships and technology-driven services to enhance customer experiences and operational efficiency.

At a glance: Q3 operational and financial highlights

– Revenue: Dhs239.2m (+25 per cent)
– EBITDA: Dhs146.8mn (+40 per cent) with a 61 per cent margin
– Net profit: Dhs104.7m (+5 per cent)
– Parking spaces: Net addition of 4.3K spaces
– Transactions: 33.8 million transactions (+16 per cent)
– Utilisation: Increased by 2.7 percentage points to 26.4 per cent

Parkin’s performance from January to September

Over the nine months ending September 30, Parkin demonstrated robust financial health and growth, with revenue reaching Dhs660.2m, a 15 per cent year-over-year increase from Dhs575.4m in the prior period. EBITDA surged by 38 per cent to Dhs419.1m, up from Dhs302.7m, marking an impressive 10 percentage point increase in EBITDA margin to 63 per cent.

Net profit for the period rose to Dhs303.5m, a 5 per cent increase despite the introduction of a 9 per cent corporate tax rate in the UAE.

The company saw consistent growth across its segments, with notable gains in developer parking revenue (+18 per cent) and public parking (+12 per cent). Additionally, Parkin recorded significant increases in seasonal permit sales, up 36 per cent year-over-year to reach 100.5 thousand permits, and in fines revenue, which rose 26 per cent to Dhs172.1m.

Across the board, Parkin’s results underscore its capability to leverage market opportunities and drive operational efficiency, further enhancing its role as a key player in Dubai’s transportation ecosystem.