Al Yah Satellite Communications Company’s (Yahsat) revenue fell by 3 percent year-on-year to AED734 million ($200 million), but its EBITDA improved 25 percent to AED566 million ($154 million).
In reporting its financial result for the six months ended 30 June 2024 with the Abu Dhabi Securities Exchange (ADX), Yahsat added that net income also increased significantly by 62 percent to AED269 million ($73 million).
On a normalised basis, adjusting for material, one-off items to allow for like-for-like comparison, EBITDA was stable versus the prior year at AED462 million ($126 million). Normalised net income, which reached AED175 million ($48 million), also remained stable versus the prior year despite the introduction of corporate tax this year – the first time it has impacted results in the UAE.
Yahsat’s performance was driven by revenue growth across Infrastructure, it’s largest segment providing communications capacity to the UAE Government by means of an index-linked long-term contract, and Managed Solutions, it’s second largest segment, providing satellite communications solutions to the UAE Government and related entities.
Infrastructure continued to grow its year-on-year revenues by 1 percent, while revenue growth for Managed Solutions was up 15 percent.
However, Mobility Solutions segment, which provides mobile satellite services using L-band spectrum, recorded lower revenues on fewer equipment sales following the Thuraya 3 satellite anomaly in April this year.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented: “Yahsat has achieved another set of resilient results, demonstrating solid growth in our core government business and offsetting headwinds in our mobile satellite services segment.
“We continue to progress toward finalising the full contract for the new $5.1 billion Capacity and Managed Services Mandate with the UAE Government and have signed, during the last quarter, the full procurement contract with Airbus for two new satellites, Al Yah 4 and Al Yah 5.
“Further, we continue to work towards a successful launch of the Thuraya 4 next-generation satellite in the fourth quarter of this year, which will significantly upgrade Thuraya’s capabilities and product line for many years to come.”
On the upcoming merger with Bayanat, which will form a new company called Space42, Al Hashemi added: “We are looking forward to completing the merger in the second half of the year and are finalising plans for the successful integration of both companies. The new combined entity will be an AI-powered space technology champion in the MENA region with global reach. For the first time in our industry, we will combine advanced satcom solutions and geospatial analytics, operating communication and Earth Observation satellites across multiple orbits.”
Yahsat reiterated its guidance for revenue, EBITDA and cash flow, but expected CapEx has been revised lower for the full year to AED1.5-1.6 billion ($400-$430 million) from AED1.7-1.8 billion ($470-$500 million) following the signing of the full procurement contract for Al Yah 4 and Al Yah 5 with Airbus in June this year.
The company also reported strong cash position of AED1.5 billion ($398 million) and Net Debt of only AED115 million ($31 million). Yahsat is expecting AED3.7 billion ($1 billion) in new advance payments to be received over the construction period of the Al Yah 4 and Al Yah 5 satellites.
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