Parkin achieves impressive Q1 2024 EBITDA growth of 33% after successful IPO – Business – Corporate

Parkin, the leading provider of paid public parking facilities and services in Dubai, has released its maiden financial results for the first quarter of 2024, following a successful IPO. The company reported impressive growth in EBITDA of 33%, with a margin expansion to 64%. This growth comes despite the introduction of a 9% corporate tax in January 2024.

Key highlights from Parkin’s Q1 2024 results include a 9% increase in the total number of parking transactions, a 2 percentage point increase in the average public parking utilization rate to 26%, and an 8% growth in total revenue, with public parking revenues increasing by 11%. The company also saw a 5% increase in profit after tax and remains on track to meet its FY 2024 guidance disclosed at the time of listing.

Ahmed Bahrozyan, Chairman of Parkin’s Board of Directors, emphasized the company’s critical role in Dubai’s transport ecosystem and its commitment to delivering financial performance, operational excellence, and growth opportunities. He expressed confidence in Parkin’s future prospects and its contribution to Dubai’s growth story.

Eng. Mohamed Al Ali, CEO of Parkin, highlighted the company’s solid performance in Q1 2024, driven by revenue growth in the core business of public parking. He emphasized Parkin’s position as a key infrastructure provider in Dubai and its focus on innovation, sustainability, and scalability. Al Ali reiterated the company’s commitment to delivering long-term value for shareholders and shaping the future of the industry.

In terms of operational performance, Parkin maintained its position as the leading provider of parking solutions in Dubai, with 197.3k parking spaces at the end of Q1 2024. The company’s public parking segment, which includes both on and off-street parking facilities, saw a 1% increase in spaces from Q1 2023 to Q1 2024. Developer parking spaces also increased by 4% during the same period.

Parkin’s financial performance in Q1 2024 was driven by an 8% increase in total revenue, with public parking revenue up by 11%. The company also saw growth in revenue from seasonal cards/permits and developer parking demand. Despite the introduction of a 9% corporate tax rate and increased expenses related to concession fees and transitional service agreements, Parkin’s net profit increased by 5% in Q1 2024.

Looking ahead, Parkin remains optimistic about its future outlook and intends to pay a semi-annual dividend starting in October 2024. The company expects to maintain its dividend policy of paying out a minimum dividend based on either 100% of profit for the year or free cash flow to equity, subject to distributable reserves requirements.

Overall, Parkin’s Q1 2024 results reflect strong growth, operational excellence, and a commitment to delivering value for shareholders while contributing to Dubai’s mobility and economic development. The company’s focus on innovation, sustainability, and scalability positions it well for future growth and success in the industry.