Dubai: Parkin sees 26% increase in fines
Parkin Company reported that fines in Dubai rose by 26% from 291,000 in Q2 2023 to 365,000 in Q2 2024, with an 87% fine collection rate for the quarter. On Monday, the company disclosed that most of the penalties given out were from enforcing public parking regulations.
The company stated on Monday that revenue from fines increased by 27 per cent to Dh54.6 million in Q2 2024 due to more customers, transactions, and improved enforcement methods using smart inspection scan cars.
The company was able to impose fines more efficiently and accurately by expanding enforcement coverage into new areas and implementing various optimization initiatives. The fines revenue from scan cars nearly doubled in the second quarter compared to the previous year, making up about 40% of total enforcement revenue. Total fines revenue rose by 13% to reach Dh107.1 million in the period of January-June 2024.
Parkin kept improving its enforcement abilities by utilizing its fleet of intelligent inspection scan vehicles. These vehicles have increased the Company's capacity for enforcement in different areas with better precision, lessening the need for manual inspections.
"Furthermore, apart from the general rise in customer base and transactions, efforts like enhancing scan routes, refining shift schedules, and streamlining permit verification procedures to eliminate manual checks led to scan cars' fines doubling in Q2 2024 compared to Q2 2023," stated on Monday.
Number of parking spots exceeds 200,000
Parkin Company reported that the paid parking spaces in Dubai surpassed 200,000 in the second quarter of 2024.
The total number of paid parking spaces across the emirate increased by 3 percent, reaching 200,400, according to the company. parking space
During the second quarter of this year, an additional 2,900s were included, bringing the total in Dubai to 177,000.
In its second quarter results, the company announced the addition of approximately 3,000 parking spaces owned by developers, bringing the total to 20,200. At the same time, the number of multi-storey car parking spaces dropped to 3,200.
Recruitment in the year 2024
Parkin experienced a 29 per cent decrease in employee benefits expense to Dh25.5 million in Q2 2024. By Q2 2023, RTA distributed costs among approximately 450 staff members, while Parkin had 311 employees by the end of Q2 2024. Yet, it was stated that the cost of employee benefits is projected to rise in future quarters because of continued recruitment and the switch of salary structure from RTA to Parkin agreements starting in Q2 2024. In the first half of 2024, the cost of employee benefits decreased by 39 per cent to Dh43.9 million.
Parkin stated that it plans to increase its number of employees for the rest of the year in order to enhance its internal abilities, leading to increased staff expenses in the latter part of 2024.
Profit after all expenses have been subtracted
The profit of the company rose by 7% to Dh95.0 million in Q2 2024, with a 6% increase in the first half of 2024 to Dh198.8 million.
In Q2 2024, EBITDA rose by 42 percent to Dh134.0 million, with an EBITDA margin of 65 percent, an increase of 14 percentage points from Q2 2023. The increase in profit margins was fueled by the company's expanding platform, which allowed for greater efficiency through increased scale and ongoing digitalization throughout its operations. In the first half of 2024, EBITDA rose by 37 percent to reach Dh272.3 million.
Revenue jumped by 12 per cent to Dh205.5 million in Q2 2024, boosted by higher income from public and developer parking, seasonal permits, and fines. The increase in profits comes despite a slightly reduced amount of billable days and the effects of record-breaking rainfall for 3 days in mid-April.
The company plans to provide a dividend every six months, with the initial payment scheduled for October 2024 for the first half of 2024.
By the conclusion of the second quarter, Parkin had a net debt of Dh846.6 million. With the Murabaha revolving credit facility fully untapped, the company has access to Dh357.1 million in liquidity. The rise in available funds is credited to the process of collecting payments carried out in the second quarter.
Ahmed Bahrozyan, chairperson of Parkin Company, noted that the second-quarter performance demonstrates ongoing progress in the main public parking business and successful implementation of important strategies for growth. Parkin will play a crucial role in supporting Dubai's ambitious growth plans by delivering sustainable shareholder value as the population and economy thrive.
CEO of Parkin, Mohamed Al Ali, stated that increased transaction volumes in public and developer parking segments, greater demand for seasonal permits, improved public parking utilization rates, and upgraded enforcement practices were key factors in the company's profitable growth in the second quarter.
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