Yahsat H1 2022 revenues rise by 8.1% YoY, with net income increasing by 50.7%

 Al Yah Satellite Communications Company (YahSat) the UAE’s flagship satellite solutions provider, has announced its H1 2022 financial results.

The company reported that its revenue reached Dhs755m ($206m), up 8.1 per cent year-on-year (YoY), underpinned by double-digit growth in managed solutions and mobility solutions.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were Dhs448m ($122m), up 5.3 per cent YoY, delivering a robust margin of 59.3 per cent.

Net income reported was Dhs167m ($45m), up 50.7 per cent YoY, driving a strong net margin of 22.1 per cent.

Its contracted future revenue of more than Dhs7.7bn ($2.1bn), is equivalent to 5.2 times the annual revenue of the previous financial year.

The company has a strong financial position, high visibility on future cash flows, as well the ability to invest in growth and sustain an attractive dividend policy, it said.

Yahsat is on track to grow FY 2022’s dividend by at least 2 per cent to 16.12 fils per share or Dhs393m ($107m), split into two equal installments payable around October 2022 and May 2023.

Musabbeh Al Kaabi, chairman of Yahsat, commented: “Against a backdrop of challenging global economic headwinds, we are delighted to record our highest ever first-half revenue whilst 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. 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.”

Ali Al Hashemi, group CEO, said: “Yahsat has delivered exceptional results, recording its highest-ever first-half revenue and demonstrating our performance-driven culture to deploy innovative capabilities and grow the business. Looking ahead, we remain on track to bring into commercial service our next generation satellite, Thuraya 4-NGS, in the second half of 2024 whilst two new satellites, Al Yah 4 and Al Yah 5, are under consideration for launch in 2026.

“We remain committed to pursuing and launching new growth opportunities across the business and we are confident that Yahsat’s robust balance sheet, business resilience and track record in delivering exceptional results will enable us to capture significant value to drive long-term growth.”