The total number of fines issued in Dubai increased by 26 per cent from 291,000 in Q2 2023 to 365,000 in Q2 2024, with a fine collection rate of 87 per cent during the quarter, according to Parkin Company. The majority of fines issued were a result of public parking enforcement. Revenue generated from fines increased by 27 per cent to Dh54.6 million in Q2 2024, driven by a higher number of customers, transactions, and an enhanced enforcement framework by a pool of smart inspection scan cars.
The expansion of enforcement coverage into new areas, alongside various optimization initiatives, allowed the company to more efficiently and accurately impose fines. Total fines revenue generated from scan cars more than doubled year on year in the second quarter, representing around 40 per cent of total enforcement revenue. The total fines revenue increased by 13 per cent to Dh107.1 million during January-June 2024. The company continued to enhance its enforcement capabilities via the use of its fleet of smart inspection scan cars.
The total number of paid parking spaces in Dubai crossed the 200,000 mark in the second quarter of 2024, with an increase of 3 per cent, totaling to 200,400 parking spaces across the emirate. Additionally, around 2,900 new parking spaces were added during the second quarter of this year, taking the total to 177,000 in Dubai. The company also revealed that around 3,000 developer-owned parking spaces were added, totaling to 20,200, while multi-storey car parking decreased to 3,200.
Parkin reported a decrease in employee benefits expenses by 29 per cent to Dh25.5 million in Q2 2024, attributed to the realignment of salaries from RTA to Parkin contracts. The company expects employee benefits expenses to increase in the coming quarters due to ongoing hiring. The net profit for Q2 2024 increased by 7 per cent to Dh95.0 million, with an EBITDA increase of 42 per cent. Total revenue increased by 12 per cent to Dh205.5 million in Q2 2024, driven by increased revenue generated by public and developer parking, seasonal permits, and fines.
The company intends to pay a semi-annual dividend in April and October, with the first payment expected in October 2024 in respect of H1 2024. Parkin’s net debt position was Dh846.6 million at the end of the second quarter, with available liquidity of Dh357.1 million. Ahmed Bahrozyan, chairman of Parkin Company, emphasized the company’s role in supporting Dubai’s expansion plans and delivering long-term shareholder value. Mohamed Al Ali, CEO of Parkin, highlighted the second-quarter profitable growth driven by higher transaction volumes and enhanced enforcement practices.
