Parkin reports strong H1 2024 results amid expansion in Dubai

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Parkin Company, the largest provider of paid public parking facilities and services in Dubai, has reported its operational and financial results for the second quarter (Q2) and the first half (H1) of 2024, ending June 30.

The company continued to report strong growth numbers, continuing the trend demonstrated in the first quarter of this year. Its second quarter results reflect its earnings as it strategically expands its infrastructure and maintains a strong performance in its core business of public parking, according to its statement on Dubai Financial Market (DFM).

Expansion of parking facilities

The total number of active parking spaces managed by Parkin increased by 3 per cent year-on-year, reaching 200,400 spaces in Q2 2024, up from 195,400 in Q2 2023. The company’s core business, public parking—which includes both on-street and off-street parking facilities—saw a 2 per cent increase in spaces, rising from 174,100 in Q2 2023 to 177,000 in Q2 2024. 

Parkin’s finances

Parkin’s financial performance in Q2 2024 was marked by a 12 per cent increase in total revenues, which reached Dhs205.5m. This growth was driven by higher revenues from public and developer parking, as well as an increase in income from seasonal permits and fines. 

It added that the second quarter earnings were impacted by a slight decrease in chargeable days during the period (70 days in Q2 2024 compared to 71 days in Q2 2023) due to the impact of unprecedented rainfall in mid-April, despite which the company maintained strong revenue growth. The extreme weather resulted in a revenue impact of approximately Dhs4m due to reduced parking utilisation, but overall operations and assets remained largely unaffected.

For the first half of 2024, Parkin reported a 10 per cent increase in total revenue, reaching Dhs421m.

Ahmed Bahrozyan, chairman of Parkin’s Board of Directors, highlighted the company’s strategic importance to Dubai’s infrastructure, stating, “With a track record spanning three decades, Parkin is the largest provider of paid public parking facilities and services in the Emirate of Dubai. Our second-quarter results highlight continued momentum in our core business of public parking and clear execution on key initiatives as part of our growth strategy.

“As Dubai’s population and economy continue to grow, Parkin will play a key role in supporting the emirate’s ambitious expansion plans while delivering long-term, sustainable shareholder value.”

Profitability and earnings

The company reported an EBITDA of Dhs134m for Q2 2024, a significant 42 per cent increase compared to the same period in 2023, with the EBITDA margin expanding to 65 per cent from 51 per cent. Net profit for the quarter rose by 7 per cent to Dhs95m, despite the introduction of a 9 per cent corporate tax rate in January 2024.

The average public parking utilisation rate also improved, increasing by 1.8 percentage points to around 26 per cent.

Additionally, Parkin added approximately 2,900 new public parking spaces and 3,000 developer-owned parking spaces to its portfolio, representing a 17 per cent increase on a net basis. The company remains on track to meet its full-year 2024 guidance and is expected to pay a H1 2024 dividend in late October.

Mohamed Al Ali, CEO of Parkin, added, “We continued to deliver profitable growth in the second quarter, underpinned by higher transaction volumes in our public and developer parking segments, greater demand for seasonal permits, improved public parking utilisation rates, and enhanced enforcement practices. 

Despite the impact of extreme rainfall and slightly fewer chargeable days, our revenue grew by 12 per cent compared to Q2 2023, with total average parking revenue per day reaching a record level. I am also pleased to report a 42 per cent increase in EBITDA with a margin of 65 per cent.”

Outlook

Parkin, which made its debut on the Dubai Financial Market in 2023, is continuing its strong performance in the first half of 2024. The results underscore its role as a critical player in Dubai’s infrastructure, with continued growth anticipated as the city expands. 

Read: Parkin delivers maiden Q1 2024 results: Profits rise by 5%