Yahsat records highest ever first-half revenue of Dh755m

Al Yah Satellite Communications Company (Yahsat) reported record revenue of Dh755 million ($206 million) in the first six months of this year, which is its highest ever performance in first half.

The Abu Dhabi-based satellite firm’s year-on-year revenue grew 8.1 per cent underpinned by double-digit growth in managed solutions and mobility solutions. The adjusted Ebitda increased by 5.3 per cent year-on-year to Dh448 million ($122 million), delivering a robust margin of 59.3 per cent.

Yahsat, a subsidiary of Mubadala Investment Company, reported a net income of Dh167 million ($45 million), up 50.7 per cent year-on-year, driving a strong net margin of 22.1 per cent.

“Against a backdrop of challenging global economic headwinds, we are delighted to record our highest ever first-half revenue while significantly growing adjusted Ebitda and net income. This reflects the strength of our business underpinned by strong contracted future revenue and positive momentum across operating segments,” said Musabbeh Al Kaabi, chairman, Yahsat.

“In light of our strong year-to-date performance, the board of directors’ confidence in future cash flow generation, ability to grow the business and financial strength of the company, we are reiterating our commitment to deliver attractive shareholder returns,” Al Kaabi noted.

Ali Al Hashemi, group CEO, Yahsat, pointed out that the company’s contracted future revenue exceeded Dh7.7 billion, equivalent to 5.2 times FY2021 annual revenue.

“Looking ahead, we remain on track to bring into commercial service our Next Generation Satellite, Thuraya 4-NGS, in the second half of 2024, while two new satellites, Al Yah 4 and Al Yah 5, are under consideration for launch in 2026,” Al Hashemi said.

Yahsat is on track to grow 2022 financial year dividend by at least two per cent to 16.12 fils per share or Dh393 million ($107 million), split into two equal instalments payable around October 2022 and May 2023.

“We remain very confident in both our short-term and long-term outlook, and have accordingly increased the lower end of our revenue guidance for FY2022, while reiterating our commitment to pay a progressive dividend,” Al Hashemi underlined.

— ashwani@khaleejtimes.com