Parkin Company Reports 26 Per Cent Surge in Fines Issued in Dubai for Second Quarter of 2024

Parkin Company reported a 26 per cent increase in fines issued in Dubai, rising from 291,000 in Q2 2023 to 365,000 in Q2 2024, with an 87 per cent collection rate.

The majority of these fines were related to public parking enforcement, the company announced on Monday.

Revenue from fines saw a 27 per cent boost, reaching Dh54.6 million in Q2 2024. This increase was driven by a rise in customers, transactions and an improved enforcement framework utilizing smart inspection scan cars.

The expansion of enforcement into new areas and various optimisation efforts enabled the company to issue fines more efficiently and accurately.

Revenue generated from scan cars more than doubled year-over-year in Q2, accounting for approximately 40 per cent of total enforcement revenue. Overall fines revenue grew by 13 per cent, reaching Dh107.1 million in the first half of 2024.

"Parkin continued to enhance its enforcement capabilities through its fleet of smart inspection scan cars. These vehicles have expanded our ability to enforce regulations in new areas with greater accuracy, reducing the need for physical inspections," the company stated.

In addition to the increase in customers and transactions, optimisation initiatives such as refining scan routes, adjusting shift patterns and streamlining permit verification processes contributed to the significant rise in fines generated by scan cars.

Dubai’s total number of paid parking spaces surpassed 200,000 in Q2 2024, with Parkin reporting a 3 per cent increase, bringing the total to 200,400.

The company added around 2,900 new spaces during the quarter, raising the total to 177,000 across the emirate. Additionally, about 3,000 developer-owned spaces were added, totaling 20,200, while multi-storey parking spaces decreased to 3,200.

Net Profit

Parkin's net profit rose by 7 per cent to Dh95 million in Q2 2024, with a 6 per cent increase in net profit for the first half of 2024, reaching Dh198.8 million. EBITDA grew by 42 per cent in Q2 2024 to Dh134 million, with an EBITDA margin of 65 per cent, up 14 percentage points from Q2 2023.

This margin expansion was driven by the company’s growing platform, scale efficiencies, and continued digitalization of operations. For the first half of 2024, EBITDA increased by 37 per cent to Dh272.3 million.

Total revenue for Q2 2024 increased by 12 per cent to Dh205.5 million, fueled by growth in public and developer parking, seasonal permits, and fines, despite fewer chargeable days and a three-day period of record rainfall in mid-April.

The company plans to pay a semi-annual dividend in April and October, with the first payment expected in October 2024 for H1 2024. At the end of Q2, Parkin’s net debt stood at Dh846.6 million. Including the undrawn Murabaha revolving credit facility, the company has available liquidity of Dh357.1 million, thanks to receivables collected during the quarter.

Ahmed Bahrozyan, Chairman of Parkin, noted that the Q2 results underscore the ongoing strength in the core public parking business and the successful execution of key growth strategies.

“As Dubai's population and economy continue to grow, Parkin will play a vital role in supporting the Emirate's ambitious expansion plans while delivering long-term, sustainable value to shareholders.”

CEO Mohamed Al Ali added that the profitable growth in Q2 was driven by higher transaction volumes in public and developer parking, increased demand for seasonal permits, improved public parking utilization rates, and enhanced enforcement practices.

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