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 a 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.

• Incorporated as a standalone entity on 1 January 2024 after transfer of assets and liabilities from RTA.

• DIF remains majority shareholder post-IPO, holding 75.01% as of 30 September 2024.

Financial highlights

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

• Q3 2024 EBITDA: AED 146.8 million (+40% YoY), margin 61% (+7 p.p.); 9M 2024 EBITDA: AED 419.1 million (+38% YoY), margin 63%.

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

• Free cash flow to equity in Q3: AED 211.6 million; 9M: AED 347.2 million.

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

Outlook and guidance

• Management expects FY 2024 performance in line with IPO guidance.

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

• Results are subject to moderate seasonality, with lower activity in summer months.