Yahsat reports record Q1 2023 revenue to the tune of Dhs369m

Al Yah Satellite Communications (Yahsat), the UAE’s flagship satellite solutions provider, recently reported its consolidated financial results for Q1 2023.

Yahsat said it continued to deliver year-on-year growth in revenue; earnings before interest, taxes, depreciation and amortisation (EBITDA) and net income increased 2 per cent, 4 per cent and 35 per cent respectively during the quarter.

On a normalised basis, EBITDA and net income surged by 8 per cent and 46 per cent respectively.

First quarter revenues reached Dhs369m for the first time in Yahsat’s history, with the strong performance primarily driven by the managed solutions segment, which saw revenue increase significantly by 29 per cent year-on-year to Dhs72m.

Infrastructure, the group’s largest business segment, continued to deliver stable and predictable returns, reporting Dhs220m in revenue for the period, 1 per cent higher than the prior year.

Yahsat Q1 highlights

The company reported a revenue of Dhs369m, up 2 per cent year-on-year, driven by strong growth of 29 per cent in managed solutions, and further growth in the infrastructure and data solutions businesses.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dhs231m were up 8 per cent year-on-year, delivering a margin of 63 per cent.

Normalised net income of Dhs108m showed a rise of 46 per cent year-on-year, generating a strong margin of 29 per cent. Contracted future revenue touched Dhs7bn, equivalent to 4.4 times last-twelve-month revenue.

The group’s robust balance sheet was highlighted by negative net debt, a strong cash position and long-term visibility of future cash flows. Net finance costs were negative, boosting net income as finance income exceeded costs on higher cash balances benefiting from higher interest rates versus the prior period.

The group is on track to grow the full-year dividend by at least 2 per cent to 16.46 fils per share or Dhs402m – based on the last closing share price, this implies an annualised dividend yield of over 6 per cent, amongst the highest offered by UAE listed stocks.

Ali Al Hashemi, group CEO Yahsat, commented: “Yahsat had a strong start to the year with continued focus on growing both our core government business and commercial segments, whilst optimising costs across the group. The upcoming Thuraya-4 NGS satellite, due to be launched in 2024, followed by two potential new satellites, Al Yah 4 and Al Yah 5, reinforce this direction and present unique growth opportunities.

“We are also working to progress previously announced initiatives with local and international partners targeting areas including satellite-enabled internet of things, vertical value-chain integration, satellite direct-to-device and earth observation.

“The satellite industry is witnessing substantial investments as exciting new products and applications are brought to the market whilst the largest satellite operators consolidate to confront the transforming, competitive landscape. Our unique backlog of future revenues, reaching Dhs7bn or 4.4 times last twelve-month revenues, as well as a robust balance sheet place us in a strong position to drive our future ambitions and continue delivering sustainable long-term growth.”