Dubai: Parkin revenues up 8% in Q1 but down by Dh4 million in Q2 due to weather disruption

Total revenues reached Dh215.3 million from January to March in the company's first financial results after the success of its IPO

Angel Tesorero

Published: Thu 9 May 2024, 10:03 AM

Last updated: Thu 9 May 2024, 3:59 PM

Parkin Company, the sole operator of public parking spaces across Dubai, registered an 8 per cent increase in revenues in the first quarter of the year. This was driven by an increase in public parking revenue, issuance of seasonal permits, and developer parking demand, the company announced on Thursday.

This, however, does not reflect the unprecedented weather in the UAE in mid-April. The service disruption during the period of heavy rains is expected to translate to a Dh4-million impact on revenues for the second quarter.

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Parkin’s total revenues reached Dh215.3 million from January to March. Public parking revenue was up 11 per cent to Dh99.3 million due to a higher volume of parking tickets issued during the period. In particular, zones C and D benefitted from higher utilisation, despite the addition of new parking spaces in these areas.

Seasonal cards and permit revenue increased 17 per cent to Dh36.9 million due to a greater volume of permits sold, particularly in the 0-3-months validity bracket. Revenue from developer parking increased 13 per cent to Dh16.6 million in the period due to higher ticket volumes.

Revenue generated from fines increased by 1 per cent to Dh52.6 million with continued effective enforcement during the period.

Net profit was up by 5 per cent to Dh103.7 million on a higher EBITDA (earnings before interest, taxes, depreciation, and amortization) base, partially offset by an increase in depreciation and amortisation expense, higher interest expense and the introduction of a 9 per cent corporate tax rate for UAE companies from January 1.

Weather disruption

Parkin’s operations and services were minimised following the unprecedented weather in the UAE during the week of April 15, which affected the broader transport network

The company estimates an impact on second-quarter revenues of up to approximately Dh4 million.

“(We) responded swiftly and decisively in deploying teams to assess and reduce the potential impact of the record rainfall across its operations,” Parkin said in a statement, adding: “A further update will be provided as part of the company’s Q2 2024 operational and financial results.

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