Yahsat sees revenue boost, pins hopes on new satellites

Al Yah Satellite Communications Company, popularly known as Yahsat, on Tuesday posted 11 per cent year-on-year growth in revenues to Dh1.2 billion during the first nine months of 2022 due to stellar performance in its managed solutions business.

In a statement, the UAE’s flagship satellite solutions provider listed on the Abu Dhabi Securities Exchange said its managed solutions business together with the stable, long-term contracted infrastructure business, serves the requirements of the UAE government for secure satellite communications capacity and end-to-end managed services.

The company said its earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 10 per cent to Dh694 million during the January-September 2022, delivering a superior margin of over 60 per cent. It further recorded normalised net income of Dh278 million, a year-on-year increase of 39 per cent achieving a strong margin of 24 per cent.

Ali Al Hashemi, group chief executive officer of Yahsat, said his company 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," Al Hashemi said.

Revenue to grow 5x

The company anticipated contracted future revenue of Dh7.6 billion, equivalent to more than five times annual revenue for the full year of 2021 and said its robust financial position with negative net debt and high visibility on future cash flows underpins ability to invest in growth and sustain attractive dividend policy.

"The company is on track to grow full year 2022 dividend by at least two per cent to Dh16.12 fils per share or Dh393 million – 50 per cent of this amount was recently paid as an interim dividend," according to the statement.

Pins hopes on new satellites

Al Hashemi said said 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.

"The potential procurement of two new satellites, Al Yah 4 and Al Yah 5, remains under consideration for launch in 2026 which will secure continuity of service well beyond the lifetime of our existing fleet," Al Hashemi 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," he said.

"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,” he said.

— muzaffarrizvi@khaleejtimes.com