Parkin was the UAe's first IPO of the year and delivered a record-setting benchmark on oversubscription. Image Credit:

Dubai: The Dubai parking spaces operator Parkin took in Dh113.9 million as profit before tax for Q1-2024 as it unveiled the first financials after its record-setting IPO in March. It was Dh98.86 million a year ago.

When it comes to profit after tax, the tally is Dh103.7 million. All of which was built on revenues of Dh215.27 million (against Dh198.8 million). It was in March that Parkin rode in with the UAE's first IPO of 2024, and delivered one of the best numbers on subscriptions. Retail investor interest in the stock has hit consistently high notes after the DFM listing.

The company also issued an update on the impact of April's unprecedented rains, with a projected Dh4 million impact on revenues for Q2-2024.

Shareholders will get a semi-annual dividend, with the first payment in October next for H1-2024. Parkin expects to pay a minimum dividend payout of the higher of: 100 per cent of profit for a year or the free cash flow to equity. (This is subject to distributable reserves requirements.)

"First quarter results highlight continued progress in delivering financial performance, driving operational excellence and realizing the potential of our growth platform to scale up and diversify," said Ahmed Bahrozyan, Chairman. 

The company - whose stock price is up 29 per cent since the March listing - had more than 197,000 parking spaces in Dubai as of end March.

“Parkin delivered a solid first quarter performance, with EBITDA up 33  and margin expanding to 64 per cent, alongside our record-breaking IPO in March," said Mohamed Al Ali, CEO. "This was driven by revenue growth of 11 per cent in our core business of public parking, where we have a dominant market position.

"Parkin provides critical infrastructure to Dubai, operating at the centre of the city’s ambitious economic growth and population expansion plan."

Impact from April's rains
"Due to challenges affecting the broader transport network, the company estimates an impact on Q2-2024
revenues of up to approximately Dh4 million. A further update will be provided as part of the Q2-2024 operational and financial results.

Seasonal effects

In a statement, the company said that its business model is 'subject to moderate seasonal fluctuations'.

"Traffic activity generally slows down during the summer months as residents take their holidays overseas and tourism activity contracts," it said. "On account of these seasonal fluctuations, Q1-2024 results may not necessarily be indicative or representative of the results that may be reported during the remaining quarters of 2024."

RTA concession

Parkin has started paying RTA a 'variable' concession fee as well as a transitional service agreement. The former totalled Dh28.7 million in Q1-2024 and represents 20 per cent of all company revenue 'with the exception of fines and developer parking'.

"The RTA is providing the Company with a range of support services under a two-year TSA Agreement," it added. The TSA expenses in Q1-24 were Dh5.8 million.