Introduction Of Dubai
Dubai’s parking enforcement saw a significant increase in activity during the second quarter of 2024, with a 26% rise in fines issued, according to Parkin Company. The total number of fines rose from 291,000 in Q2 2023 to 365,000 in Q2 2024, driven largely by public parking enforcement. The company also reported a fine collection rate of 87% during the quarter.
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Revenue from fines surged by 27% to Dh54.6 million in Q2 2024, a result of increased customer numbers, transactions, and a strengthened enforcement framework. A major contributor to this growth was the use of smart inspection scan cars, which allowed for more efficient and accurate enforcement, especially in newly covered areas. Fines revenue from these scan cars more than doubled year-over-year, comprising about 40% of total enforcement revenue. Overall, fines revenue for the first half of 2024 reached Dh107.1 million, marking a 13% increase.
Expansion of Parking Spaces
The number of paid parking spaces in Dubai crossed the 200,000 mark during Q2 2024, with a 3% increase bringing the total to 200,400. This included the addition of approximately 2,900 new parking spaces, raising the total to 177,000 within Dubai. Additionally, around 3,000 developer-owned parking spaces were added, while multi-storey car parking decreased slightly to 3,200 spaces.
Hiring and Financial Performance
Parkin’s employee benefits expense saw a 29% decrease to Dh25.5 million in Q2 2024, attributed to a reduced headcount, which stood at 311 employees by the end of the quarter, down from 450 in Q2 2023. However, the company anticipates an increase in employee benefits expenses in the coming quarters due to ongoing hiring and salary re-alignments.
Financially, Parkin’s net profit rose by 7% to Dh95.0 million in Q2 2024, with a first-half net profit up 6% to Dh198.8 million. EBITDA increased by 42% in Q2 2024 to Dh134.0 million, representing a 65% EBITDA margin, up 14 percentage points from Q2 2023. The growth in EBITDA was driven by scale efficiencies and continued digitalisation across the company’s operations. Total revenue increased by 12% to Dh205.5 million in Q2 2024, bolstered by gains in public and developer parking, seasonal permits, and fines, despite a slight decrease in chargeable days due to record rainfall in mid-April.
Future Outlook
Parkin plans to pay a semi-annual dividend in April and October, with the first payment expected in October 2024 for H1 2024. At the end of Q2 2024, the company’s net debt stood at Dh846.6 million, with available liquidity of Dh357.1 million, boosted by receivables collected during the quarter.
Ahmed Bahrozyan, chairman of Parkin Company, highlighted the company’s continued momentum in public parking and successful execution of its growth strategy. Mohamed Al Ali, CEO of Parkin, attributed the company’s profitable growth in the second quarter to higher transaction volumes in public and developer parking, increased demand for seasonal permits, improved public parking utilisation, and enhanced enforcement practices.
As Dubai’s population and economy continue to expand, Parkin remains committed to supporting the Emirate’s growth ambitions while delivering long-term, sustainable value to shareholders.
