Parkin revenues up 8% in Q1 but down by Dh4 million in Q2 due to weather disruption
The operator of public parking in Dubai, Parkin Company, reported an 8% increase in Q1 revenue to Dh215.3 million. On the other hand, Q2 weather disruptions—particularly the heavy rains—are expected to result in a Dh4 million decline in revenue. Parkin is dedicated to quick response and mitigation efforts in spite of obstacles.
Parkin saw notable growth in a number of revenue streams during the first quarter of the year, primarily due to increased revenue from public parking, the issuance of seasonal permits, and the demand for developer parking. When compared to the same period last year, total revenues increased by 8% to Dh215.3 million. Despite the addition of new parking spaces in zones C and D, parking revenue from public parking increased significantly by 11% to Dh99.3 million. This increase was attributed to higher rates of parking ticket issuance.
Revenue from seasonal cards and permits also saw a noticeable increase, rising by 17% to Dh36.9 million. This increase was primarily driven by a spike in permits sold, especially those with a 0–3 month validity period. Additionally, due to a rise in ticket volumes, developer parking revenue increased by 13% to Dh16.6 million.
The business's successful enforcement tactics brought in Dh52.6 million more in fine revenue, a 1% increase. Although partially offset by higher depreciation and amortization expenses, higher interest costs, and the introduction of a 9% corporate tax rate for UAE companies effective from January 1, this positive performance helped to contribute to a 5% increase in net profit, totaling Dh103.7 million.
Nevertheless, in the second quarter, Parkin encountered operational difficulties as a result of exceptional weather, especially the intense downpour that pounded the United Arab Emirates in mid-April. Parkin experienced a significant impact on its operations and services due to the disruptive weather, resulting in an estimated revenue loss of Dh4 million for the second quarter.
Parkin quickly assembled teams to evaluate and minimize possible effects on all of its operations in the wake of the weather disruption. As part of its continuous efforts towards transparency and accountability, the company is dedicated to furnishing additional details regarding its operational and financial outcomes for the second quarter of 2024.
Despite obstacles, Parkin Company's fortitude and prompt action show its dedication to upholding operational excellence and providing high-quality services to Dubai's citizens and tourists.
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