Abu Dhabi’s Yahsat posts $205m in half-year revenue

Abu Dhabi satellite operator Yahsat Group has reported a 2 per cent decrease in half-year revenues to $205m (Dhs753m) from $206m a year ago.

The group delivered revenue growth in infrastructure, which provides communications capacity to the UAE government and data solutions, offering satellite-based broadband data solutions.

Yahsat said its managed solutions, providing complete value-added satellite communications solutions primarily to the government and related entities, maintained revenues versus an exceptionally strong prior year.

The company’s mobility solutions, the Thuraya business providing mobile satellite services using L-band spectrum, registered strong double-digit growth in the second quarter of the year, up 12 per cent compared to the prior year, driven by higher equipment sales.

“Yahsat continues to improve its business operations and profitability, and we remain focused on growing both our core government business and commercial segments, whilst controlling and optimising costs across the group,” said Ali Al Hashemi, group CEO of Yahsat.

The satellite operator’s net income rose by 5 per cent year-on-year (YoY) to $48m, generating an improved margin of 23 per cent from the previous year’s 22 per cent.

Yahsat said its earnings before interests, taxes, depreciation and amortisation (EBITDA) reached $125m in the first half of the year, up 3 per cent YoY.

“Yahsat remains in a strong position to take advantage of these developments, underpinned by our unique backlog of future revenues and our historically strong and robust balance sheet,” said Al Hashemi.

The company said its net debt of more than $125m, total available liquidity of $686m and long-term visibility of future cash flows, support its future investment in organic growth (Al Yah 4 and Al Yah 5) and opportunistic acquisitions.

Yahsat’s growth strategy

Meanwhile, Yahsat plans to allocate more than $100m towards capital expenditures in 2023 as part of the ‘T4-NGS’ satellite programme.

The programme, the next-generation telecommunications system for Thuraya, is scheduled to become operational in the first half of 2025 with a total cost of up to $550m, including manufacturing, launch, insurance and new ground infrastructure.

Yahsat has also invested $1bn in relevant ground infrastructure worldwide, reiterating its commitment to continue investing in such programmes, including the T4-NGS satellite.

The company seeks to boost its investments in the coming years to enhance its satellite fleet, including the potential launch of two new satellites, ‘Yah 4’ and ‘Yah 5’, for fixed satellite communication services.

Yahsat offers multi-mission satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia.

Its fleet of five satellites reaches more than 80 per cent of the world’s population, enabling critical communications such as broadband, video broadcasting, backhauling and mobile voice and data solutions.

It is also interested in the internet of things (IoT) and machine-to-machine (M2M) communication fields due to the high demand for applications in these areas.

The company is considering seizing business opportunities in earth observation and remote sensing sectors by launching at least five satellites in collaboration with the Bayanat. Abu Dhabi wealth fund Mubadala raised $731m from the initial public offering of Yahsat in July 2021.

Road: Abu Dhabi’s Yahsat to invest $100m in T4-NGS satellite programme