Parkin Company (PARKIN) Q3 2024 earnings summary

Executive summary

• Achieved 25% year-over-year revenue growth in Q3 2024, reaching AED 239.2 million, and 40% increase in EBITDA to AED 146.8 million, with margin expansion to 61%.

• Net profit rose 5% to AED 104.7 million despite the introduction of a 9% corporate tax rate.

• Maintains exclusive operation of Dubai's on- and off-street paid public parking, with 207,300 spaces and a 49-year concession agreement.

• Digital payments accounted for 91% of transactions, reflecting operational efficiency and customer adoption.

• Added approximately 4,300 net new parking spaces, with total parking transactions up 16% to 33.8 million.

Financial highlights

• Q3 2024 revenue: AED 239.2 million (+25% year-over-year); 9M 2024 revenue: AED 660.2 million (+15%).

• Q3 2024 EBITDA: AED 146.8 million (+40%); margin expanded to 61% (+7 p.p.).

• Q3 2024 net profit: AED 104.7 million (+5%); 9M 2024 net profit: AED 303.5 million (+5%).

• Free cash flow to equity in Q3: AED 211.6 million; cash conversion rate at 98%.

• Operating expenses increased 4% to AED 90.3 million, mainly due to higher employee benefits and concession fees.

Outlook and guidance

• Management expects business to perform in line with IPO guidance, despite seasonality.

• Employee benefits expense expected to rise in future quarters due to hiring and salary realignment.

• Transitional service expenses from RTA will continue for up to two years from January 2024.

• Minimum dividend payout set at the higher of 100% of net profit or free cash flow to equity, subject to reserves.