The Roads & Transport Authority has engaged third party expertise to examine the existing seasonal card framework, including pricing. Once the study is complete, the RTA may recommend adjustments to the seasonal card structure to address current pricing disparities and ensure better alignment with the variable pricing introduced earlier this year.
Enforcement
The total number of enforcement notices issued by Parkin increased by 63%, from 418k in Q3 2024 to 682k in Q3 2025. This increase reflects higher customer activity, the expansion of our parking portfolio and the positive, ongoing impact of technology-based enhancements to our enforcement framework introduced in H2 2024. Additionally, the growth of our smart scan inspection fleet to 27 units from the end of 2024 played a material role. In February 2025, Parkin onboarded an equivalent number of trained drivers to operate these vehicles, enabling our dedicated inspectors to be redeployed either to field operations or supervisory roles.
82% of total enforcement notices in Q3 2025 (560k) were issued in relation to public parking violations (Q3 2024: 355k), an increase of 58% year-on-year.
During Q3 2025, the Company’s field enforcement team scanned a total of 9.8 million vehicle registration plates, representing a 107% increase compared to Q3 2024 (4.7 million). In addition to the previously announced technology upgrades, this performance was driven by a data-driven reallocation of resources, with inspection teams redeployed to high-demand parking zones during peak hours to maximise enforcement coverage.
Further gains were achieved during the summer months relative to the same period in 2024, supported by a new initiative focused on improving inspector mobility and wellbeing during extreme heat, ensuring continuous operations and consistent performance levels.
In September 2025, 31 extra drivers were hired to operate our smart scan inspection vehicles. This allowed inspectors who previously operated these vehicles to transition into field and supervisory roles, which had the effect of increasing overall inspector capacity.
During Q3 2025, the Company’s fleet of smart inspection cars scanned a total of 15.4 million vehicle registration plates, a 169% increase on the same period last year (Q3 2024: 5.7 million).
Q3 2025 Financial Performance
Total Revenue
Total revenue increased by 43% to a quarterly record of AED 343.3 million (Q3 2024: 239.2 million), with notable year-on-year increases in revenue generated across all business segments, particularly public parking, seasonal card / permit fees and enforcement. As at Q3 2025, revenues from developer parking and enforcement, for which Parkin is exempt from concession fees, constituted 37% of total revenues (Q3 2024: 35%).
Public parking revenue increased 30% to AED 135.0 million (Q3 2024: AED 103.7 million), supported by an increase in the weighted average hourly tariff to AED 3.03 (Q3 2024: AED 2.01) and an increase in the size of the public parking portfolio. Average revenue per public parking spot increased 21%, from AED 581 in Q3 2024 to AED 706 in Q3 2025. Revenue generated during peak hours amounted to AED 74.4 million (55% of total public parking revenue) in Q3 2025, compared to AED 49.1 million (47% of total public parking revenue) in Q3 2024.
Developer parking revenue increased 28% to AED 23.5 million in the period (Q3 2024: AED 18.3 million), supported by stronger transaction volumes, improved utilisation and the application of the variable tariff in relation to c.6k developer spaces. Average revenue per developer parking space increased by 40%, from AED 758 in Q3 2024, to AED 1,062 in Q3 2025.
Revenue from seasonal cards and permits in Q3 2025 increased 57% to AED 59.9 million, due to a record number of seasonal cards sold during the period (Q3 2024: 38.3 million).
Enforcement revenue increased by 59% to AED 103.0 million in Q3 2025 (Q3 2024: AED64.9 million). The overall fine collection rate amounted to 86% during the quarter (Q3 2024: 85%).
Concession Fee Expense
As part of a 49-year concession agreement, Parkin pays the RTA a variable concession fee on all revenues, except those from enforcement and developer parking. Under the terms of the agreement, the overall concession fee is capped at 27.5%.
The implementation of the variable parking tariff from April 2025 has resulted in a substantial change to the weighted average public parking tariff. Subject to ongoing discussions with the RTA, Parkin has provisioned for a blended concession rate of 27.1% in relation to the relevant concession revenue streams for Q2 and Q3 2025. Consequently, and in anticipation of concluding discussions with the RTA, a provision of AED 28.9 million has been recognised for Q2 and Q3 2025. This provision reflects the probable increase in the variable concession fee applied to the relevant revenue streams, based on the best estimate available at this time.
In Q3 2025, the variable concession fee reached AED 61.0 million (Q3 2024: AED 30.2 million). The fee increase was driven by higher revenue generated by the Company’s core business segments, namely public parking (including MSCPs) and seasonal cards.
Staff Costs
In Q3 2025, employee benefits expense constituted AED 33.8 million, based on a total headcount of 354 staff, compared to AED 30.7 million and 326 staff as at the end of Q3 2024. Hiring will continue during 2025 as the Company concludes building up its internal capabilities.
EBITDA
EBITDA increased 36% in Q3 2025 to AED 199.8 million (Q3 2024: AED 146.8 million), representing an EBITDA margin of 58% (Q3 2024: 61%). The modest dip in EBITDA margin is largely attributable to higher concession fees, staff costs and some other expenses, including professional fees, advertising / marketing and IT.
Net Profit
Net income for the period increased 50% to AED 157.0 million (Q3 2024: 104.7 million). The growth in the bottom line was due to higher overall revenues, lower depreciation and financing costs, offset by higher taxes.
Free Cash Flow and Cash Conversion
By the end of Q3 2025, the Company had generated AED 433.4 million of Free Cash Flow to Equity (Q3 2024: AED 211.6 million). In addition to current receivables, the Company continues to focus on collecting receivables generated in prior periods and novated to Parkin.
The cash conversion rate in Q3 2025 was 99%, due to Parkin’s strong revenue performance and capex light business model.
Borrowings
In Q1 2024, Parkin and Emirates NBD PJSC entered into an agreement for AED 1.2 billion in unsecured credit facilities, comprising of a 5-year Murabaha term financing facility of AED 1.1 billion and an AED 100 million Murabaha revolving credit facility. Both facilities carry a variable interest set at 3-month EIBOR plus a margin of 0.80% per annum.
At the end of the Q3 2025, Parkin’s net debt position amounted to AED 577.3 million.(2)
Including the Murabaha revolving credit facility, which remains fully undrawn, the Company has available liquidity of AED 654.8 million.(3)
FY 2025 Outlook
Full-year guidance was communicated to the market in February 2025. The guidance below incorporates an adjustment to enforcement revenue, underscoring continued operational strength.
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(2) Q3 2025 Net Debt = Long-term Borrowings of AED 1,098.1m + Long-term Lease Liabilities of AED 21.1m + Short-term Lease Liabilities of AED 12.8m - Short-term bank deposits of AED 422.5m - Cash and Equivalents of AED 132.3m
(3) Q3 2025 liquidity = Short-Term Bank Deposits of AED 422.5m + Cash and Equivalents of 132.3m + RCF of AED 100.0m
Public Parking Revenue
The application of the variable pricing tariff to the Company’s public parking portfolio, will positively impact revenue. For FY 2025, it is anticipated that the public parking segment will generate revenue of between AED 520 – AED 550 million (FY 2024: AED 404.6 million).
Enforcement Revenue
The continued effectiveness of Parkin’s enforcement framework is now anticipated to deliver annual enforcement revenue of between AED 360 – AED 390 million (FY 2024: AED 249.1 million), up from the previously guided range of AED 275 – 305 million.