Al Yah Satellite Communications Company (Yahsat), the UAE’s flagship satellite provider, has posted a normalised net income of AED278 million ($76 million) for the first nine months, up 39% year-on-year, achieving a strong margin of 24%.
The company posted a revenue of AED1.2 billion ($315 million), up 11% year-on-year, underpinned by double-digit growth in Managed Solutions and Mobility Solutions. The firm’s adjusted EBITDA of AED694 million is up 10% year-on-year, delivering a superior margin of over 60%.
Yahsat’s contracted future revenue of AED7.6 billion is equivalent to more than 5 times annual revenue for the full year 2021. The company maintains a robust financial position with negative net debt and high visibility on future cash flows underpinning its ability to invest in growth and sustain an attractive dividend policy.
Full year dividend to grow 2pc
The firm is on track to grow full year 2022 dividend by at least 2% to AED 6.12 fils per share or AED393 million, 50% of which was recently paid as an interim dividend
The firm’s third quarter revenues and EBITDA soared by 16% and 21% respectively year-on-year, underpinned by a stellar performance in its Managed Solutions business.
This business, together with the stable, long-term contracted Infrastructure business, serves the requirements of the UAE Government, including government related bodies and entities in the UAE, for secure satellite communications capacity and end-to-end managed services.
Excellent performance
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, said: “Yahsat has delivered another excellent performance with third quarter revenue and EBITDA growth accelerating compared to the first half of 2022. Our core Government business has performed particularly well with quarterly revenues in our Managed Solutions business more than doubling year-on-year.
“Through the procurement of the T4-NGS satellite, which we expect to launch in the first half of 2024 and enter operations in the first half of 2025, we remain well positioned to meet the UAE Government’s increasing demand for advanced satellite communication solutions.
“T4-NGS will also strongly support our commercial operations in Mobility Solutions, which achieved double digit revenue growth during the first nine months of the year.”
Two new satellites
The potential procurement of two new satellites, Al Yah 4 and Al Yah 5, remains under consideration for launch in 2026 will secure continuity of service well beyond the lifetime of its existing fleet, he said.
“Our industry is witnessing an exciting period of significant innovation and investment. Yahsat is in a strong financial position with a robust balance sheet and a large and visible backlog of contracted future revenues, providing it with the capacity to invest and pursue future growth opportunities.
“Our recent investment and commercial agreement with eSAT Global to develop a platform for low and very low data rate IoT sensing and tracking devices is an example of the proactive role that Yahsat is playing in shaping the industry’s future development.”-- TradeArabia News Service
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