Parkin Company, the only provider of public parking spaces in Dubai, has seen an 8% increase in revenue in the first quarter of the year. This growth is attributed to an increase in public parking revenue, seasonal permits, and developer parking demand. However, the company expects a decrease in revenue of around Dh4 million in the second quarter due to service disruptions caused by unprecedented weather in the UAE in mid-April.
During the first quarter, Parkin’s total revenue reached Dh215.3 million, with public parking revenue increasing by 11% to Dh99.3 million. This increase was mainly driven by a higher volume of parking tickets issued, along with higher utilization in zones C and D despite the addition of new parking spaces in these areas. Revenue from seasonal cards and permits also increased by 17% to Dh36.9 million, while revenue from developer parking increased by 13% to Dh16.6 million.
The company also saw a 1% increase in revenue generated from fines, totaling Dh52.6 million, during the period. Net profit increased by 5% to Dh103.7 million, primarily due to higher EBITDA but partially offset by increased depreciation and amortization expenses, higher interest expenses, and the introduction of a 9% corporate tax rate for UAE companies from January 1.
However, Parkin experienced operational disruptions following the extreme weather conditions in mid-April, which affected the broader transport network in the UAE. The company estimates that this weather disruption could impact second-quarter revenues by approximately Dh4 million. Parkin responded swiftly to assess and mitigate the impact of the heavy rainfall across its operations and will provide further updates as part of its Q2 2024 operational and financial results.
In conclusion, Parkin Company has shown steady revenue growth in the first quarter of the year, driven by various factors such as public parking revenue, seasonal permits, and developer parking demand. Despite the challenges posed by the weather disruption in mid-April, the company remains resilient and is taking proactive measures to minimize the impact on its second-quarter revenues. Investors and stakeholders can expect a comprehensive update on Parkin’s operational and financial performance in the upcoming quarterly report.
