Parkin Company (PARKIN) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered record revenue of AED 265.0m (+30% YoY), EBITDA up 42% to AED 158.2m, and net profit up 13% to AED 120.0m, surpassing IPO guidance.

• Operational momentum was driven by expanded parking spaces, higher transaction volumes, improved utilisation, and technology-driven enforcement.

• Free cash flow to equity reached AED 132.4m in Q4 and AED 479.6m for FY 2024, with a 98% cash conversion rate.

• Public parking transactions rose 16% YoY to 36.9 million in Q4 2024.

• Portfolio expanded by 10.4k spaces, reaching 206.4k total spaces and a larger customer base.

Financial highlights

• Q4 2024 revenue: AED 265.0m (+30% YoY); EBITDA: AED 158.2m (+42% YoY, margin 60%); Net profit: AED 120.0m (+13% YoY).

• FY 2024 revenue: AED 925.2m (+19% YoY); FY 2024 net profit: AED 423.5m (+7% YoY).

• Operating expenses increased 15% YoY, mainly due to higher professional fees, RTA TSA expense, and board remuneration.

• Net debt at year-end: AED 725.5m; available liquidity: AED 502.3m, including AED 100m undrawn RCF.

• Interim dividend of AED 198.8m paid in October 2024; final dividend of AED 280.9m proposed for H2 2024.

Outlook and guidance

• FY 2025 public parking revenue guidance: AED 520–550m; enforcement (fines) revenue: AED 275–305m.

• Variable parking tariff policy effective April 2025, expected to boost revenue.

• 100% of public parking portfolio to be subject to variable pricing in 2025.

• Premium parking to comprise ~35% and standard parking ~65% of the public portfolio.

• Anticipates 3% increase in public parking spaces and at least 1,500 new developer spaces in 2025.