Parkin Reports Record Revenue of $65.12 Million in Q3

Parkin, largest provider of parking facilities and services in Dubai, on Tuesday said that its total revenue increased by 25% to $65.12 million in Q3 of 2024 as against $52.33 during the corresponding period in 2023.

In addition, there were two extra chargeable days in the period, compared to the same period last year.

This notable increase in revenue was generated from public and developer parking, seasonal card/ permit fees and enforcement, Parkin said in a disclosure with Dubai Financial Market (DFM) in the morning.

Public parking revenue increased 16% to $28.23 million, supported by a higher volume of parking tickets purchased during the period, particularly across zones C and D, compared with $24.29 million for the same period last year.

Revenue from seasonal permits increased 8% to $10.43 million, as against $9.61 million in the third quarter of 2023, due to a record number of seasonal cards that were sold during the third quarter of this year.

Revenue from developer parking increased 32% to $4.98 million in the period due to a net increase in the number of parking spaces in operation, combined with increased ticket volumes. The developer parking in Q3 of 2023 was $3.78 million.

Revenue generated from fines increased by 56% to $17.67 million in Q3 of 2024 and this was driven by an increase in the total number of parking spaces, an increase in customer numbers, a rise in transaction volumes and an enhanced enforcement framework underpinned by Parkin’s fleet of smart inspection scan cars. Scan cars are expanding enforcement coverage and improving efficiency and accuracy in issuing fines.

EBITDA Up

EBITDA increased 40% in Q3 of 2024 to $39.97 million, representing an EBITDA margin of 61%, up 7 percentage points on Q3 of 2023. The margin expansion was driven by operational leverage, supported by Parkin’s revenue growth from an expanding customer base, additional parking spaces, increased transaction volumes and utilization rates, alongside operational improvements in enforcement.

Net Profit

Net profit increased 5% to $28.51 million as against $27.17 million in the corresponding period in 2023. The continued growth in EBITDA was partially offset by higher depreciation and amortisation expense, higher finance costs and the introduction of 9% corporation tax for UAE companies from 1 Jan 2024.

Free Cash Flow

In the third quarter, the Company generated $94.53 million of Free Cash Flow to Equity. During the remainder of 2024, in addition to current receivables, the Company will also focus on collecting legacy receivables from related parties generated in prior periods and novated to Parkin. The cash conversion rate was 94%, due to Parkin’s capex light business model, strong revenue performance and stable cost base.

Borrowings

In Q1 2024, Parkin and Emirates NBD entered into an agreement for $330 million in unsecured credit facilities, comprising of a 5-year Murabaha term financing facility of $300 million and an $27.23 million Murabaha revolving credit facility.

Both facilities carry a variable interest set at 3-month EIBOR plus a margin of 0.80% per annum. At the end of the third quarter, Parkin’s net debt position was $179.72 million.

Including the Murabaha revolving credit facility, which remains fully undrawn, the company has available liquidity of $154.91 million. The increase in liquidity is due to the collection of $83.83 million in receivables by the Company during Q3 of 2024, Parkin said.