Parkin’s 2024 Net Profit Climbs 13% to Dhs120 Million Amid Expansion

Parkin Company PJSC, Dubai’s leading provider of paid public parking facilities, has reported a net profit of Dhs120 million for the fourth quarter of 2024, marking a 13% increase compared to the same period last year. This growth comes despite the introduction of a 9% corporate tax rate earlier in the year.

The company’s total revenue for Q4 2024 reached Dhs265 million, a 30% year-on-year surge. This uptick is attributed to a rise in parking transactions and the addition of approximately 10,400 new parking spaces, expanding Parkin’s portfolio to over 206,000 spaces. Public parking transactions increased by 16% to 36.9 million, with the average public parking utilisation rate improving by 2.4 percentage points to 28.3%.

Earnings before interest, taxes, depreciation, and amortisation for the quarter stood at Dhs158.2 million, reflecting a 42% increase from the previous year. EBITDA margins expanded to 60%, up from 55% in Q4 2023, underscoring the company’s operational efficiency and revenue growth.

For the full year 2024, Parkin reported a net profit of Dhs423.5 million, a 7% rise from the previous year. Annual revenue reached Dhs925.2 million, up 19% year-on-year, driven by the expansion of parking spaces, increased transaction volumes, and higher utilisation rates. Revenue from fines saw a significant increase of 37%, amounting to Dhs249.1 million, while seasonal permits rose by 36% to 139,000. Developer parking revenue also experienced a 19% growth, totalling Dhs69.5 million.

In response to the strong financial performance, Parkin has announced a cash dividend for the second half of 2024, scheduled for distribution in April 2025, pending shareholder approval.

Looking ahead, the company plans to implement a variable pricing tariff in early April 2025. This initiative aims to optimise parking space utilisation and enhance revenue streams. For the fiscal year 2025, Parkin projects revenue from the public parking segment to be between Dhs520 million and Dhs550 million.