Parkin lifts net income 27% to AED 199.2 million in third quarter
Key Facts
Parkin lifted net income in the third quarter of 2026 by 27% to AED 199.2 million, compared with AED 157.0 million in the same period of 2025, in what the company said was its strongest quarterly performance to that point. Total revenue rose 21% to AED 415.2 million, from AED 343.3 million a year earlier. Earnings before interest, tax, depreciation and amortisation rose 28% to AED 255.0 million, versus AED 199.8 million in the third quarter of 2025. The margin on those earnings also widened to 61% from 58%. Chief Executive Mohamed Abdullah Al Ali attributed the growth to diversified revenue streams, saying, "Double-digit growth reflects the strength of our diversified business."
Profit growth came amid divergent performance across revenue streams: public parking revenue fell, while expansion in developer parking, seasonal permits and other sources offset the weakness, according to Al Ali. Developer parking revenue reached AED 39.8 million, up 69% year on year, supported by portfolio expansion and higher transaction volumes. Revenue from seasonal cards and permits rose 40% to AED 83.8 million, compared with AED 59.9 million a year earlier. The chief executive said growth in developer parking, seasonal permits and other revenue streams "more than offset the weakness in public parking revenue during the quarter." The performance highlights the role of growing activities in supporting total revenue during the period.
Sales of seasonal cards rose to 110.6 thousand in the third quarter, up 37% from 81.0 thousand a year earlier. Holders of these cards are excluded from the calculation of the public parking occupancy rate, the company said. Public occupancy stood at 19.1%, compared with 21.3% in the third quarter of 2025 and 20.2% in the second quarter of 2026. Parkin attributed the decline to some demand shifting to seasonal cards and to newly added parking spaces needing time to reach expected occupancy levels. The company therefore recorded higher card sales alongside a decline in its public parking occupancy measure in the same quarter.
On cash flow, free cash flow to equity reached AED 421.5 million through the end of the third quarter, compared with AED 433.4 million in the corresponding period of 2025. The company attributed the decline to a longer collection cycle for enforcement revenue and delays in collecting some receivables from telecommunications companies. The figure offers a different perspective from the quarter's growth in net income and operating earnings, as it measures cash available after the company's financing needs under the metric reported by Parkin. The company said the longer collection cycle was one reason for the decline from a year earlier. These factors link the timing of revenue collection to the accumulated cash balance at the end of the period.
Parkin expects to add between 1 thousand and 2 thousand public parking spaces in the fourth quarter of 2026, after adding 2.7 thousand spaces during the third quarter. On distributions, the company said it intends to pay on a semiannual basis in April and October. It expects the minimum distribution for the second half of 2026 to equal the higher of net income for the second half or free cash flow to equity, subject to the availability of distributable reserves. These expectations set out the company's next milestones in 2026 for adding parking spaces and potentially distributing cash to shareholders. The information provided did not specify a distribution amount.