Parkin Company, the largest provider of paid public parking facilities and services in Dubai, recently reported its operational and financial results for the second quarter of 2025, achieving a total revenue increase of 56 percent to a quarterly record of AED320 million ($87.12 million).
The company saw notable increases in revenue generated from public parking, seasonal card/permit fees and enforcement. As at Q2 2025, revenues from developer parking and enforcement, for which Parkin is exempt from concession fees, constituted 37 percent of total revenues.
Variable pricing boosts public parking revenue to AED132.2 million
Parkin’s public parking revenue increased 48 percent to AED132.2 million, underpinned by an increase in the weighted average hourly tariff to AED3.04. In Q2 2025, revenue generated during peak hours amounted to AED78.3 million or 59 percent of total public parking revenue, compared to AED42.5 million or 47 percent in Q2 2024.
Average revenue per public parking spot increased 38 percent, from AED506 in Q2 2024 to AED701 in Q2 2025, supported by the impact of the variable pricing tariff and an increase in the size of the public parking portfolio.
Developer parking also increased 55 percent to AED22.3 million in the period, supported by stronger transaction volumes, improved utilization and the application of the variable tariff in relation to around 13,000 developer spaces. Average revenue per developer parking space increased 60 percent, from AED710 in Q2 2024 to AED1,137 in Q2 2025.
Net income rises 56 percent to AED148.4 million
In Q2 2025, employee benefits expense constituted AED34.6 million, based on a total headcount of 350 staff, compared to AED25.5 million and 311 staff as at the end of Q2 2024. Hiring will continue during 2025 as Parkin concludes building up its internal capabilities, targeting a headcount of around 390 by year-end.
The company’s EBITDA also increased 41 percent in Q2 2025 to AED189.3 million, representing an EBITDA margin of 59 percent. The modest dip in EBITDA margin is largely attributable to higher concession fees, staff costs and some other expenses, including professional fees, advertising & marketing and IT.
Parkin’s net income for the period increased 56 percent to AED148.4 million. The growth in the bottom line was due to higher revenues, lower depreciation and financing costs, offset by higher taxes.
By the end of Q2 2025, Parkin had generated AED312.0 million of Free Cash Flow to Equity. In addition to current receivables, the company continues to focus on collecting receivables generated in prior periods and novated to Parkin.
The cash conversion rate in Q2 2025 was 98 percent, due to Parkin’s strong revenue performance and capex-light business model.
Public parking segment to generate up to AED550 million in revenues
The Parkin management team maintains the full-year financial guidance disclosed to the market in February 2025, with anticipated revenue line items now expected towards the upper end of the previously guided range.
The application of the variable pricing tariff to the company’s public parking portfolio will positively impact revenue. For FY 2025, it is anticipated that the public parking segment will generate revenues of between AED520–AED550 million.
The continued effectiveness of Parkin’s enforcement framework is anticipated to generate annual fine revenues between AED275 and AED305 million.
During the first half of 2025, a total of 4,700 public parking spaces were added to the company’s public portfolio. The management has revised its outlook, anticipating that a total of 3,000-4,000 public parking spaces could be awarded by the RTA during H2 2025.
Post period end, Parkin signed contracts with the Islamic Affairs & Charitable Activities Department and Dubai Holding, adding a total of 31,700 spaces to the company’s developer portfolio. Management now estimates that another 2,500 spaces could be added to the company’s developer parking portfolio by year-end 2025.
