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Dubai sees 26% rise in parking fines during Q2 2024

Parkin Company announced a 26% increase in the total number of fines issued in Dubai during the second quarter of 2024, rising from 291,000 in Q2 2023 to 365,000 in Q2 2024.

According to a Khaleej Times report, the company also reported an 87% fine collection rate during this period, with the majority of fines stemming from public parking enforcement.

Revenue from fines saw a significant jump of 27%, reaching Dh54.6 million in Q2 2024. This boost in revenue was attributed to a growing number of customers and transactions, as well as enhanced enforcement measures, including the use of smart inspection scan cars.

The expansion of enforcement into new areas, coupled with optimization initiatives, led to a doubling of fines revenue generated by scan cars year-on-year in the second quarter, representing about 40% of total enforcement revenue. Overall fines revenue for the first half of 2024 increased by 13%, totaling Dh107.1 million.

Parkin also reported that the total number of paid parking spaces in Dubai surpassed 200,000 in Q2 2024, with the addition of 2,900 new spaces, bringing the total to 177,000 across the emirate. The company’s employee benefits expense dropped by 29% to Dh25.5 million in Q2 2024, despite ongoing hiring efforts expected to increase costs in the coming quarters.

Parkin’s net profit rose by 7% to Dh95.0 million in Q2 2024, while the first half of 2024 saw a 6% increase in net profit to Dh198.8 million. The company’s EBITDA grew by 42% in Q2 2024 to Dh134.0 million, driven by scale efficiencies and continued digitalization efforts. Total revenue for Q2 2024 reached Dh205.5 million, marking a 12% increase despite fewer chargeable days and adverse weather conditions in mid-April.

Chairman Ahmed Bahrozyan emphasized the company’s continued momentum in public parking and its strategic role in Dubai’s expansion plans, while CEO Mohamed Al Ali highlighted the profitable growth driven by higher transaction volumes and improved enforcement practices.