Dubai: Dubai’s Parkin pulled in a sharp revenue gain to Dh419.77 million for the first six months of 2024, up from Dh382.86 million. That brought about profit before tax of Dh218.4 million, against Dh188 million a year ago.
If the tax element is included, the profit tally would be Dh198 million.
"Our second quarter results highlight continued momentum in our core business of public parking and clear execution on key initiatives as part of our growth strategy," said Ahmed Bahrozyan, Chairman. "The company operates an extensive, digitally enabled, parking portfolio at strategic locations as part of the city’s critical infrastructure, with a systemic role in enabling mobility."
Parkin plans to issue a dividend for the first-half of the year, payable towards end October.
For 2024 and thereafter, the company expects to pay a 'minimum dividend payout of the higher of:
- 100 per cent of net profit for the year; or
- Free cash flow to equity, subject to distributable reserves requirements.
Q2 'record' despite April rains
"The company delivered revenue growth of 12 per cent in Q2, with total average parking revenue per day reaching a record level, notwithstanding the impact of the extreme rainfall that Dubai experienced in April and the slightly lower number of chargeable days in the period," said Mohamed Al Ali, CEO. "I am also pleased to report that EBITDA increased by 42 per cent with a margin of 65 per cent."
Average public parking utilisation rate during the April to June period was 26 per cent, up 1.8 per cent.
Parkin - which is working on its own app - had its IPO and listing on DFM earlier this year.
Dh 107.1 m
What Parkin got through fines in H1-24, which is 13% higher from a year beforeMore chances at higher growth
Soon, Parkin's numbers will feel the boost from an additional 7,500 new private developer spaces it signed up, as well as from the EV partnership with DEWA, 'which aims to develop Dubai’s EV charging infrastructure to create a more sustainable future for our city’s transport network'.
On the EV alliance with DEWA, the Parkin CEO said that initial coordination efforts will focus on the technical evaluation criteria required for each location to park the EV charging infrastructure. And that the UAE’s recent announcement of a uniform tariff structure represents a good place to start.
Parkin will work with private developers to expand our special development zones, bring in more digital services into our operations, and back them with solar powered parking meters. We are ready for the Net Zero journey
“This project with DEWA was actually supposed to start two years down the line,” said Al Ali. “But given where Parkin is on its sustainability and Net Zero 2050 journey, we have brought forward those plans. The intent is to create a business structure that will benefit both parties as well as future users of our charging networks.”
Developer ties
"The developer parking segment currently accounts for less than 10 per cent of total revenues, paid parking in private developer areas represents a significant growth opportunity for the company," said Parkin in a statement. (This is where the company takes on the management of parking areas associated with residential and commercial developments from private developers.)
In all, Parkin's developer spaces increased 17 per cent from 17,200 in Q2-2023 to 20,200 in Q2-2024. It signed an agreement to add the 7,500 additional spaces across six key locations in Dubai.
As of end June, the company was operating the parking at 3,700 of the new spaces. And by end July, 6,900 spaces were fully phased in, with the remainder scheduled by end August. (End of this quarter will also see a reduction of 7,700 spaces after the ending of a deal with a developer in the Al Sufouh area.)
What Parkin expects in H2-24
"Notwithstanding the effect of seasonality on operations and revenue in later quarters, the management team consider that the business will perform in line with guidance provided to the market during the listing process in Q1 2024," said a statement.
Multi-storey car parking
Parkin is keeping options open on generating more revenue from operating multi-storey car parking in Dubai. Currently, it fetches less than 2 per cent of revenues, and the lowest among multiple business lines.
Where possible Parkin will scout for possibilities to operate multi-storey car parking in Dubai. We do have an arrangement with RTA in place for first right of refusal on future facilities
“Multi-storey car parking will remain a main pillar of operations,” said Khattab Abu Qauod, Chief Financial Officer at Parkin. The company has first right of refusal to take on any future facilities as part of an arrangement with the RTA. Based on this, 20 per cent of the revenue generated from these facilities will be paid as concession fees to RTA.
"We will continue to maintain a capex-lite structure, as was promised at the time of the IPO," said Abu Qauod.
