Q1 profits rise 5% at Dubai’s Parkin

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The Dubai government’s parking management company Parkin reported a 5 percent increase year on year in net earnings for the first quarter of 2024.

This is despite the introduction of a 9 percent standard corporate tax from January this year.

Net profit rose to AED103.7 million ($28.2 million) in January to the end of March, partially offset by an increase in depreciation and amortisation expense and higher interest charges.

Total revenue rose 8 percent to AED215 million, supported by an increase in public parking revenue, seasonal cards or permits and developer parking demand. 

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Public parking revenue was up 11 percent to AED99.3 million due to a higher volume of parking tickets issued during the period.

Seasonal cards and permit revenue increased 17 percent to AED36.9 million due to a greater volume of permits sold, particularly in the 0-3 months validity bracket. 

Revenue from developer parking increased 13 percent to AED16.6 million in the period due to higher ticket volumes. 

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Revenue generated from fines increased by 1 percent to AED 52.6 million. 

Parkin said its business 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.

Due to 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, the company said.

Last month’s storm had minimal impact on Parkin’s operations and services, it said, as it responded swiftly by deploying teams to assess and reduce the potential impact of the record rainfall on its operations.

However, the company estimates an impact of up to AED4 million on its Q2 2024 revenues due to challenges affecting the broader transport network.  

Parkin intends to pay a semi-annual dividend in April and October, with the first payment expected in October for the first half of the year.