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Yahsat records highest ever first-half revenue

August 10, 2022
technology

ABU DHABI, 9th August, 2022 (WAM) -- Al Yah Satellite Communications Company today announced its financial results for the six-month period ended 30th June 2022, recording its highest ever first-half revenue.

The company reported revenue of AED755 million (US$206 million), up 8.1% year-on-year, underpinned by double-digit growth in Managed Solutions and Mobility Solutions.

The Adjusted EBITDA increased by 5.3% year-on-year to AED448 million ($122 million), delivering a robust margin of 59.3%.

Yahsat reported a net income of AED167 million ($45 million), up 50.7% year-on-year, driving a strong net margin of 22.1%. The contracted future revenue of more than AED7.7 billion ($2.1 billion), equivalent to 5.2 times FY2021 annual revenue.

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

Yahsat is on track to grow FY2022 dividend by at least 2% to 16.12 fils ($4.39 cents) per share or AED393 million ($107 million), split into two equal instalments 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 Chief Executive Officer of Yahsat, said, 'Our contracted future revenue exceeds AED7.7 billion, equivalent to 5.2 times FY2021 annual revenue. 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 very confident in both our short-term and long-term outlook, and have accordingly increased the lower end of our revenue guidance for FY2022, whilst reiterating our commitment to pay a progressive dividend.'

Yahsat reiterated its commitment to grow its dividend by at least 2% per year, reflecting the Board of Directors' confidence in the cash flow generation and overall financial strength of the business. For the financial year 2022, the total expected dividend is a minimum of 16.12 fils per share (US Cents 4.39), split into two equal instalments payable around October 2022 and May 2023 respectively. This represents a total dividend payment of AED393 million ($107 million).

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