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

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Parkin, which made its debut on the Dubai Financial Market in 2023, announced its financial results for the first quarter ended March 31.

The report highlighted a strong performance despite certain challenges and seasonal fluctuations, the company noted in its earnings report.

It reported a net profit increase of 5 per cent to Dhs103.7m, primarily due to a higher EBITDA base. However, this was partially offset by increased depreciation and amortisation expense, higher interest expense, and the introduction of a 9 per cent corporate tax rate for UAE companies from January 1.

The company reported on the recent weather disruption that impacted operations.

The report noted that Parkin responded swiftly to the unprecedented weather that hit the UAE during the week of April 15, deploying teams to assess and mitigate potential impacts of record rainfall across its operations. While disruption to Parkin’s operations and services was minimised, challenges affecting the broader transport network are estimated to impact Q2 2024 revenues by up to approximately Dhs4m, it added.

Parking Q1 2024 financial performance overview:

Total revenue for Q1 2024 increased by 8 per cent to Dhs215.3m compared to the same period last year.

This growth was primarily driven by:

• Public parking revenue: Total revenue grew by 8 per cent, with public parking revenues up 11 per cent to Dhs99.3m, attributed to increased volume of parking tickets issued, particularly in zones C and D.
• Seasonal cards/Permit revenue: A notable increase of 17 per cent to Dhs36.9m, driven by higher volume of permits sold, especially in the 0 – 3 months validity bracket.
• Developer Parking Revenue: Up by 13 per cent to Dhs16.6m, due to increased ticket volumes.
• Fines Revenue: Slightly increased by 1 per cent to Dhs52.6m, with continued effective enforcement.
• Debt: At quarter-end, Parkin’s net debt position was Dhs994.5m. Including the Murabaha revolving credit facility, which remains undrawn, the Company has available liquidity of Dhs202.9m.

Developer parking
Developer spaces increased 4 per cent from 17.2k in Q1 2023 to 17.9k in Q1 2024 following the addition of c.600 new spaces at Business Bay and a smaller amount around the Burj Khalifa.

It added the number of developer-owned parking spaces operated and managed during Q2 2024 is expected to decrease from 17,800 to 10,000, due to a change in the terms of an agreement with a developer in the Al Sufouh area, which will result in a reduction of 7,700 spaces.

Multi-story Car Parking (MSCP)
MSCP spaces decreased by 22 per cent from 4.1k spaces in Q1 2023, to 3.2k in Q1 2024, due to the demolition of the Sabkha car park and the closure of the Al Rigga site for maintenance and repair.

Parking transactions
The total number of parking transactions increased 9 per cent from 29.9 million in Q1 2023 to 32.5 million in Q1 2024, primarily driven by increased transactions across the public parking segment. Of particular significance is the fact that over 90 per cent of all transactions in Q1 2024 were cashless, with Parkin offering six payment channels and four alternative payment methods for customers.

The report underscored that the Q1 2024 financial results demonstrate Parkin’s resilience and proactive approach in managing operational challenges while continuing to deliver strong financial performance. The company remains focused on driving sustainable growth and enhancing customer experience in the public parking sector.

FY 2024 outlook
Notwithstanding the effect of seasonality on operations and revenue in later quarters, the management team noted that the business will perform in line with guidance provided to the market during the listing process in Q1 2024.

Read: Parkin IPO pops 35% on debut Dubai listing