Parkin Plc, the UAE 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 demonstrate robust growth, building on the momentum from the first quarter of 2024. Its Q2 results reflect the firm’s earnings as it strategically expands its infrastructure and maintains a strong performance in its core public parking business, according to its statement filed with the Dubai Financial Market (DFM).
Total parking spaces
The total number of active parking spaces managed by Parkin Plc increased by 3 percent year-on-year, reaching 200,400 spaces in Q2 2024, up from 195,400 in Q2 2023. The company’s core public parking segment, which includes both on-street and off-street facilities, saw a 2 percent increase in spaces, rising from 174,100 in Q2 2023 to 177,000 in Q2 2024.
Robust financial results
Parkin Plc’s financial performance in Q2 2024 was marked by a 12 percent increase in total revenues, which reached AED205.5 million ($55.94 million). This growth was driven by higher revenues from public and developer parking, as well as an increase in income from seasonal permits and fines. The company noted 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, which resulted in a revenue impact of approximately AED4 million due to reduced parking utilization. However, overall operations and assets remained largely unaffected.
For the first half of 2024, Parkin Plc reported a 10 percent increase in total revenue, reaching AED421 million ($114.62 million).
Read more: UAE’s DEWA and Parkin join forces to expand Dubai’s EV charging network
Profitability improvement
The company reported an EBITDA of AED134 million for Q2 2024, a significant 42 percent increase compared to the same period in 2023, with the EBITDA margin expanding to 65 percent from 51 percent. Net profit for the quarter rose by 7 percent to AED95 million, despite the introduction of a 9 percent corporate tax rate in January 2024.
The average public parking utilization rate also improved, increasing by 1.8 percentage points to around 26 percent.
Expanding footprint
Additionally, Parkin Plc added approximately 2,900 new public parking spaces and 3,000 developer-owned parking spaces to its portfolio, representing a 17 percent 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.
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