Seasonal Cards Demand, Fines Boost Parkin's Q3 Profit By 27% To Dh199.2 Million

(MENAFN- Khaleej Times) Parkin reported a 27 per cent year-on-year increase in net profit to a record Dh199.2 million in the third quarter of 2026, supported by higher income from parking fines and enforcement activities, seasonal cards and developer parking operations.

The Dubai-listed parking operator said total income rose 21 per cent to Dh415.2 million, compared with Dh343.3 million in the same period last year.

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Earnings before interest, taxes, depreciation and amortization increased 28 per cent to Dh255 million, while the Ebitda margin improved to 61 per cent from 58 per cent a year earlier.

The growth came despite a decline in public parking revenue, as more motorists shifted from hourly parking payments to seasonal cards.

Revenue from parking enforcement activities at Parkin increased by 32 per cent year-on-year to Dh136.4 million in the third quarter of 2026, compared with Dh103 million during the same period last year. For the first nine months of 2026, enforcement revenue rise 29 per cent to Dh363.6 million, up from Dh281.5 million in the corresponding period of 2025.

Parking fines and enforcement support earnings

Revenue from parking enforcement activities was among the contributors to Parkin's record quarterly performance, alongside developer parking and seasonal cards.

Enforcement and developer parking together accounted for 42 per cent of total revenue during the quarter, compared with 37 per cent in the same period last year.

Both segments are exempt from concession fees paid to Dubai's Roads and Transport Authority, helping improve the company's profitability.

However, Parkin did not disclose a separate figure for revenue generated from parking fines or the number of fines issued during the quarter.

The company also said revenue from enforcement activities contributed to its cash collection cycle, with some payments taking longer to collect.

Seasonal parking card sales jump 37%

Parkin sold 110,600 public parking seasonal cards during the quarter, an increase of 37 per cent from 81,000 a year earlier.

Revenue from seasonal cards and permits rose 40 per cent to Dh83.8 million, compared with Dh59.9 million in the third quarter of 2025.

Demand was particularly strong for one-month seasonal cards, with sales increasing 44 per cent to 91,800.

The company attributed the growth to customers taking advantage of seasonal card prices that have remained unchanged since Dubai introduced variable parking tariffs in April 2025.

Meanwhile, public parking revenue declined 5 per cent to Dh127.8 million as hourly parking transactions and utilization decreased.

The average public parking utilization rate fell to 19.1 per cent from 21.3 per cent a year earlier. Parkin noted that seasonal card users are not included in this utilization measure.

Parking network expands to 272,500 spaces

Parkin expanded its total parking portfolio by approximately 53,500 spaces over the past 12 months, bringing its network to a record 272,500 spaces at the end of September, an increase of 24 per cent year-on-year.

Public parking spaces increased 7 per cent to 205,800, while developer parking spaces nearly tripled to 63,000.

Developer parking revenue surged 69 per cent to Dh39.8 million, supported by new contracts and higher transaction volumes.

Total parking transactions reached 36 million during the quarter, an increase of 6 per cent year-on-year.

However, public parking transactions declined 4 per cent to 28.8 million, while developer parking transactions jumped 79 per cent to 7 million.

Stronger earnings despite softer public parking demand

Mohamed Abdulla Al Ali, Chief Executive Officer of Parkin, said the company had delivered its strongest quarterly financial performance to date.

"The double-digit growth demonstrates the strength of our diversified business, with growth across developer parking, seasonal cards and our other revenue streams more than offsetting softer public parking revenues during the quarter," he said.

He added that the company continued to expand its parking portfolio in cooperation with Dubai's Roads and Transport Authority (RTA), while customers increasingly adopted cashless payment methods.

Parkin raises seasonal card revenue outlook

Following strong demand during the first nine months of 2026, Parkin raised its full-year revenue guidance for seasonal cards and permits to Dh300 million–Dh320 million, up from its previous forecast of Dh280 million–Dh300 million.

The company maintained its developer parking revenue guidance at Dh130 million–Dh150 million.

Public parking revenue is expected to be close to the midpoint of the previously announced Dh510 million–Dh550 million range.

Parkin also expects capital expenditure of Dh45 million–Dh55 million this year to support new developer contracts and technology upgrades, including smart parking infrastructure.

The company said it remains committed to its semi-annual dividend policy, with payments scheduled for April and October.

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