Parkin posts 27% profit rise on enforcement gains

Parkin posted a 27% quarter-on-quarter rise in third-quarter net profit to Dh199.2 million for the period ended Sept. 30, Gulf News reported on Nov. 10.

The Dubai parking operator raised 2026 guidance for enforcement revenue to Dh460 million-Dh480 million from Dh420 million-Dh460 million, making penalties and seasonal cards central to growth as public parking revenue fell 5%.

Total income rose 21% quarter on quarter to Dh415.2 million. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 28% to Dh255 million, producing a 61% margin.

“The double-digit growth demonstrates the strength of our diversified business,” Chief Executive Eng. Mohamed Abdulla Al Ali said, according to Gulf News. He said income from developer parking, seasonal cards and other activities more than compensated for softer public parking revenue.

For the first nine months of 2026, Parkin’s net profit rose 25% to Dh550.6 million, while income increased 24% to Dh1.16 billion. The company expanded its parking base by 24% to 272,500 spaces.

Developer parking was the fastest-growing part of the portfolio. Spaces in that segment rose to 63,000 from 23,200, while revenue climbed 69% to Dh39.8 million and transactions increased 79% to 7 million. In the third quarter itself, Parkin added about 4,300 developer spaces and lost about 2,800 after one developer contract ended in August, leaving a net increase of 1,500.

Enforcement revenue, earned from penalties and fines, rose 32% to Dh136.4 million. Notices increased 34% to 916,000 from 682,000, with developer sites accounting for 259,000 notices, up from 121,000.

Parkin’s smart inspection fleet grew to 37 vehicles from 27. Those vehicles scanned 26.5 million licence plates, up 72%, while the fine collection rate reached 87%, compared with 86% a year earlier and 75% in the second quarter.

The revenue mix matters for margins because developer and enforcement income carries no concession fees. Together, those two streams accounted for 42% of total revenue, compared with 37% previously, helping lift the EBITDA margin to 61% from 58%.

The weaker spot was public parking. Revenue from that activity declined 5% to Dh127.8 million from Dh135.0 million a year earlier, while transactions fell 4% to 28.8 million. Utilisation dropped to 19.1% from 21.3%, and revenue per public space fell 12% to Dh624 from Dh706.

Parkin attributed the decline to seasonal cards still being sold at pre-variable tariff prices and to new spaces needing time to build usage.

Seasonal cards reached 110,600 sales, up 37%, with one-month cards rising 44% to 91,800. September sales set a monthly record at 37,600, while seasonal-card and permit revenue increased 40% to Dh83.8 million.

Cash conversion fell to 89% from 99% as capital expenditure rose to Dh28.1 million from Dh2.1 million. Free cash flow to equity declined to Dh421.5 million from Dh433.4 million, with Parkin citing longer enforcement collection cycles and telecom receivables as reasons for delayed inflows.

Parkin also raised guidance for seasonal-card and permit revenue to Dh300 million-Dh320 million from Dh280 million-Dh300 million. Public parking revenue is expected near the midpoint of a Dh510 million-Dh550 million range, while developer revenue guidance remains Dh130 million-Dh150 million and capital expenditure guidance stays Dh45 million-Dh55 million.

The company delivered 2,700 public spaces in the third quarter and expects to add 1,000 to 2,000 more in the fourth quarter. Full second-half public-space guidance increased to 3,500-5,000 spaces.