Parkin Posts 13% Rise in 2024 Net Profit to Dhs120m as Revenue and EBITDA Grow Robustly

Parkin, Dubai’s provider of paid public parking facilities and services, reported robust Q4 2024 results and full-year 2024 performance that surpassed the guidance laid out at its March 2024 IPO. The company demonstrated strong momentum across key financial metrics, supported by expanding parking capacity, higher transaction volumes, and continued operational efficiency. The results underscore Parkin’s central role in Dubai’s transport ecosystem, its ongoing portfolio growth, and its focus on digitisation and innovation as drivers of profitability and shareholder value.

Q4 2024 performance: momentum carried through to the year-end

Parkin delivered a solid quarterly performance in the fourth quarter of 2024, with several indicators signaling improved scale and profitability. Revenue for Q4 2024 rose 30 per cent year on year, reaching Dhs265 million. This notable growth was driven by a combination of increased parking transactions and the addition of new space capacity, both of which contributed to a stronger top line.

EBITDA expanded even more robustly, up 42 per cent from the prior year quarter to Dhs158.2 million, highlighting improved operating leverage and efficiency initiatives that enabled Parkin to convert higher volumes into stronger profitability. The EBITDA margin improved to 60 per cent in Q4 2024, up from 55 per cent in Q4 2023, reflecting a combination of favorable mix, better enforcement, and disciplined cost management. Net profit for the quarter increased by 13 per cent to Dhs120 million, despite the impact of a 9 per cent corporate tax, which was a new tax consideration during the period.

The company continued to expand its physical footprint, adding approximately 10,400 new parking spaces during the quarter, lifting the total portfolio to 206,400 spaces. Public parking transactions climbed to 36.9 million, a 16 per cent year-on-year increase, demonstrating growing utilization and demand in the public parking network. The average public parking utilisation rate also rose, by 2.4 percentage points to 28.3 per cent, underscoring stronger productivity of the existing fleet alongside the expansion in space.

From a shareholder-return perspective, Parkin announced that a cash dividend for H2 2024 is planned to be paid in April 2025, subject to shareholder approval. This reflects the company’s intention to translate operating success into tangible returns for investors, consistent with its status as a listed entity and its capital allocation framework.

Key highlights of the Q4 2024 performance include:

• Revenue: Dhs265 million, up 30% YoY.
• EBITDA: Dhs158.2 million, up 42% YoY.
• EBITDA margin: 60%, up from 55% in Q4 2023.
• Net profit: Dhs120 million, up 13% YoY.
• New spaces added: ~10,400, total portfolio 206,400.
• Public parking transactions: 36.9 million, up 16% YoY.
• Public parking utilisation: 28.3%, up 2.4 percentage points.
• Dividend: H2 2024 cash dividend planned for April 2025, subject to approval.

The Q4 2024 performance underscores Parkin’s ability to translate capacity expansion into higher utilization and profitability. The substantial increase in new spaces, coupled with rising transaction volumes and improved margins, illustrates the effectiveness of the company’s operational strategy and its execution on expansion plans. The quarter also demonstrated Parkin’s capacity to maintain profitability in the face of higher tax obligations, signaling resilience in its business model and financial structure.

Full-year 2024 performance: expansion, efficiency, and resilience

For the full year 2024, Parkin reported revenue of Dhs925.2 million, reflecting a 19 per cent increase from FY 2023. This uplift in annual revenue signals sustained growth across the company’s portfolio and indicates that the expansion and demand dynamics observed in Q4 extended through the year. EBITDA for the year reached Dhs577.3 million, up 39 per cent, with a margin expansion of nine percentage points to 62 per cent. The year-on-year improvement in EBITDA margin corroborates the ongoing gains in operating efficiency and favorable business mix, as higher-margin elements such as enforcement-focused revenue streams and optimized asset utilization contributed to profitability.

Net profit for the year rose to Dhs423.5 million, an improvement of 7 per cent versus FY 2023. The growth in net income reflects the combined effects of stronger EBITDA, disciplined cost management, and the tax environment experienced during the year. Within the revenue mix, fines revenue surged by 37 per cent to Dhs249.1 million, indicating intensified enforcement-related activity that translated into higher revenue without compromising customer experience or service levels. Seasonal permits also rose significantly, by 36 per cent, to 139,000, pointing to greater engagement with municipal programs and seasonal demand patterns.

Developer parking revenue increased 19 per cent to Dhs69.5 million, highlighting Parkin’s ability to monetize parking assets across diverse user segments, including commercial and development-oriented demand. Capital expenditure for the year jumped to Dhs1.1 billion, driven by a one-off upfront payment to the Roads and Transport Authority (RTA) associated with a 49-year concession agreement. This notable capex outlay reflects a strategic investment that secures a long-term framework for Parkin’s operations and expansion within Dubai’s transport ecosystem.

Key full-year metrics include:

• Revenue: Dhs925.2 million, up 19% YoY.
• EBITDA: Dhs577.3 million, up 39% YoY.
• EBITDA margin: 62%, up 9 percentage points from the prior year.
• Net profit: Dhs423.5 million, up 7% YoY.
• Fines revenue: Dhs249.1 million, up 37% YoY.
• Seasonal permits: 139,000, up 36% YoY.
• Developer parking revenue: Dhs69.5 million, up 19% YoY.
• Capital expenditure: Dhs1.1 billion, driven by one-off upfront payment to the RTA for a 49-year concession.

The year’s performance reflects Parkin’s ability to maintain growth while managing a broader portfolio and a more complex operating environment. The notable advance in fines revenue and seasonal permits demonstrates Parkin’s diversified revenue streams, which can provide resilience even as core parking transactions evolve in response to rider behavior, city policies, and the broader urban mobility landscape. The substantial capex, while a one-off in nature, is positioned to support the company’s longer-term growth trajectory and provide a stable platform for sustained profitability beyond 2024.

Parkin’s leadership highlighted the company’s strategic execution in its first year as a publicly listed entity, with the chairman and CEO emphasizing the role of Parkin in Dubai’s transport ecosystem and the benefits of continued digitisation and innovation.

Portfolio expansion, operational excellence, and revenue mix

Parkin’s quarterly expansion of approximately 10,400 new parking spaces during Q4 2024 brought its total portfolio to 206,400. This expansion is a central driver of the company’s improved revenue and profitability, enabling greater accessibility for drivers and higher throughput across the parking network. The combination of increased capacity and rising utilization contributed to stronger public parking transaction volumes, which rose 16 per cent year on year to 36.9 million in Q4 2024, reinforcing the narrative of growing demand for Parkin’s services.

In terms of utilization, the average public parking utilization rate increased by 2.4 percentage points to 28.3 per cent, a clear signal that the added capacity is being effectively absorbed by the market. This dynamic supports the stronger EBITDA margins observed in both Q4 2024 and the full year, as higher occupancy levels help to spread fixed costs over a larger base while enhancing cash flow generation.

The revenue mix in 2024 shows a broad-based growth across multiple streams. Revenue from fines rose 37 per cent to Dhs249.1 million, indicating enhanced enforcement-related activity that translates to higher income without compromising service quality. Seasonal permits surged 36 per cent to 139,000, reflecting demand patterns tied to seasonal mobility needs and regulatory programs. Developer parking revenue grew 19 per cent to Dhs69.5 million, illustrating Parkin’s ability to monetize parking solutions in partnership with developers and property owners.

This diversified revenue mix, combined with a strong expansion program, underpins Parkin’s ability to sustain growth while maintaining high margins. The company’s emphasis on digitisation and innovation—harnessing data, automation, and digital platforms—likely contributes to improved operational efficiency, better enforcement outcomes, and a more seamless customer experience, all of which support higher volumes and better asset utilization.

Operational efficiency and strategic mindset

Parkin’s leadership attributed the annual performance to the company’s strong operating base, expanded portfolio, and effective enforcement measures. The CEO highlighted record profits and growth, linking them to the expanded parking portfolio and improved enforcement. The EBITDA growth of 42 per cent in Q4 underscores Parkin’s operational leverage and efficiency initiatives, with management noting that the company exceeded the financial targets set at the IPO. This reflects both the strength of Parkin’s strategic plan and the efficacy of its execution under the leadership team.

The chairman framed the results as evidence of “remarkable progress” in Parkin’s first year as a publicly listed entity. He underscored Parkin’s central role in Dubai’s transport ecosystem, describing the company as a mobility enabler that benefits from Dubai’s stable growth trajectory and ongoing urban development. He also pointed to the company’s focus on digitisation and innovation as a core driver of market leadership, competitive advantage, and long-term value creation for shareholders.

As Parkin looks ahead to 2025, the leadership team remains confident in delivering another strong performance. The outlook cites Dubai’s broad economic growth, population expansion, and record tourism figures as tailwinds that support continued demand for parking services, enforcement solutions, and mobility-related infrastructure. This strategic positioning is intended to sustain Parkin’s growth trajectory and expand its market presence within the Dubai transit and urban mobility landscape.

Capital expenditure, concession framework, and strategic implications

A pivotal element of Parkin’s 2024 year-end narrative is the capital expenditure incurred to secure a long-term concession agreement with the RTA. The one-off upfront payment to the RTA amounted to Dhs1.1 billion and was tied to a 49-year concession arrangement. This substantial capex reflects a strategic investment designed to secure favourable operating terms and to enable sustained growth within Dubai’s transport ecosystem. While the upfront cost is significant, it is intended to provide Parkin with a stable, long-duration framework in which to optimize asset utilization, expand capacity, and enhance service delivery. The concession structure also has implications for future cash flows, depreciation, and amortisation, as well as potential regulatory and policy considerations that may influence long-term earnings potential.

From a financial perspective, the upfront payment is likely to be amortised over the concession period, shaping Parkin’s depreciation and amortisation profile and impacting reported earnings in the near term. In addition, the concession arrangement could provide Parkin with preferred access to strategic locations, favorable terms for maintenance and operations, and a defensible market position in a city where mobility and parking demand are tightly linked to economic activity, population growth, and tourism. The 49-year horizon aligns with long-run urban mobility objectives and Parkin’s aim to maintain a leading position in Dubai’s parking ecosystem through durable partnerships and asset investments.

This capex surge, while a one-off in the 2024 accounting period, signals Parkin’s commitment to scale and to building a long-run platform that can sustain high utilization rates and profitability. It also emphasizes the importance of the RTA partnership in Parkin’s strategy, reinforcing the company’s strategic focus on aligning with city authorities to support efficient, safe, and accessible urban mobility. The combination of expanded capacity, diversified revenue streams, and a long-term concession position provides Parkin with a robust foundation for continued growth in 2025 and beyond, particularly in a city that continues to attract residents, businesses, and visitors.

Leadership perspectives: board chair and CEO on momentum and strategy

Ahmed Bahrozyan, Parkin’s chairman of the Board of Directors, described the company’s progress as “remarkable” in its first year as a publicly listed entity. He stressed that Parkin sits at the center of Dubai’s transport ecosystem and functions as a mobility enabler, enabling efficient movement for people and goods across the city. Bahrozyan asserted that the results demonstrate Parkin’s dominant market position, operational excellence, and a strong emphasis on digitisation and innovation as core strategic pillars. His comments reflect confidence in the company’s trajectory and the belief that Parkin will continue to leverage its strengths to support Dubai’s growing mobility needs.

CEO Engineer Mohamed Al Ali highlighted the company’s record-breaking profits and growth, attributing the success to an expanded parking portfolio and improved enforcement measures. He pointed to the EBITDA growth of 42 per cent in the fourth quarter as evidence of Parkin’s operational leverage and efficiency initiatives. He added that Parkin had exceeded the financial targets set at its IPO, underscoring the strength of the company’s strategic vision and leadership. These remarks emphasize Parkin’s focus on maintaining a disciplined approach to growth while driving efficiency and leveraging new assets to maximize returns for shareholders.

Looking ahead, Parkin’s leadership expressed confidence in delivering another strong performance in 2025, supported by Dubai’s economic growth, population expansion, and record tourism figures. The outlook underscores Parkin’s optimism about continued demand for parking infrastructure, enforcement services, and related mobility solutions as part of a thriving urban economy.

Dividend policy, shareholder value, and investor considerations

Parkin’s plan to distribute a cash dividend for H2 2024 in April 2025, subject to shareholder approval, highlights the company’s commitment to returning capital to shareholders in line with its strong cash generation and earnings trajectory. The dividend intention serves as a signal to investors about Parkin’s confidence in its ongoing profitability and cash flow generation, while also aligning with the expectations of investors who seek regular income streams from listed growth companies in Dubai’s logistics and mobility sectors.

The dividend policy, coupled with the substantial capex to secure the 49-year concession, reflects a balanced capital allocation strategy. Parkin appears to be investing aggressively in capacity and long-term concessions while maintaining a framework for returning capital to shareholders when appropriate. This approach can enhance investor confidence and support a favorable valuation by signaling durable growth, while the company remains vigilant about maintaining liquidity and financial flexibility amidst ongoing expansion and evolving market conditions.

Market context, macro backdrop, and 2025 outlook

Parkin’s performance is closely tied to Dubai’s broader economic and demographic dynamics. The company’s growth aligns with Dubai’s ongoing urban development, population growth, and a record tourism footprint that collectively drive demand for efficient mobility infrastructure and services. Dubai’s economy, characterized by large-scale development projects, a vibrant tourism sector, and a continuous push toward smart city initiatives, provides a favorable backdrop for Parkin’s growth trajectory. Parkin’s emphasis on digitisation and innovation dovetails with broader city strategies to enhance mobility and reduce congestion, positioning the company to benefit from policy and market developments that prioritize efficient transportation networks and sustainable urban planning.

The outlook for 2025 suggests continued momentum, supported by the city’s macroeconomic growth and a resilient urban mobility framework. As Dubai continues to attract residents, businesses, and visitors, Parkin’s expanded portfolio, diversified revenue streams (including fines, seasonal permits, and developer parking), and long-term concession relationships should position the company to sustain revenue growth and maintain healthy EBITDA margins. The combination of capacity expansion, enhanced enforcement efficiency, and a robust strategic vision underscores Parkin’s potential to capitalize on Dubai’s evolving mobility landscape and to deliver durable value to shareholders in the years ahead.

Key considerations for stakeholders

• The ongoing impact of the RTA concession on Parkin’s asset base and earnings profile will be a focal point for investors monitoring long-term value creation.
• The mix of revenue streams, including fines, seasonal permits, and developer parking, provides a diversified income base that can help mitigate cyclicality and external shocks.
• The dividend payment, subject to shareholder approval, will be watched as a signal of Parkin’s cash generation strength and capital allocation discipline.
• Dubai’s macro backdrop, including population growth, tourism trends, and infrastructure investments, will continue to shape Parkin’s growth potential and competitive positioning in the parking and mobility sector.

Conclusion

Parkin’s fourth-quarter 2024 and full-year 2024 results demonstrate a strong, expansion-driven growth story underpinned by higher capacity, improved efficiency, and a diversified revenue mix. The quarterly expansion of 10,400 parking spaces, a 30 per cent rise in Q4 revenue, 42 per cent growth in EBITDA, and a 60 per cent EBITDA margin in the quarter collectively reflect Parkin’s effective execution against its IPO targets. For the full year, revenue of Dhs925.2 million, EBITDA of Dhs577.3 million, and net profit of Dhs423.5 million signal a resilient business model supported by higher-margin revenue streams such as fines and developer parking, alongside a significant capex program tied to a 49-year concession with the RTA. The leadership’s commentary emphasizes the company’s central role in Dubai’s transport ecosystem, its focus on digitisation and innovation, and its confidence in sustaining momentum into 2025, buoyed by Dubai’s positive economic trajectory, population growth, and tourism strength. With a dividend plan aligned to shareholder interests and a long-term concession framework in place, Parkin aims to build on its market leadership, deliver continued profitability, and create enduring value for investors as it advances its strategic priorities in the years ahead.