Al Yah Satellite Communications Company PJSC (Yahsat) has reported a significant increase in net income for the first quarter of 2024, nearly doubling to Dh194 million. Revenue also grew by one per cent to Dh371 million, with Ebitda increasing by 58 per cent to Dh352 million. Despite a decrease in net income of 8 per cent due to the introduction of UAE corporate tax, the company maintained strong financial performance.
Underpinning this growth was revenue increases in the Infrastructure and Managed Solutions segments, with Infrastructure growing by one per cent and Managed Solutions by 19 per cent. However, Mobility Solutions and Data Solutions segments experienced declines in revenue, primarily due to lower equipment sales and subscriber numbers respectively.
Yahsat’s highlights for the period include revenue growth of Dh371 million, up 1 per cent year-on-year, normalized Ebitda of Dh247 million, up 7 per cent year-on-year, with a double-digit reduction in the normalized cost base resulting in an expanded margin of 67 per cent. Normalized Net Income (profit) was Dh99 million, down 8 per cent versus the prior year period, with margins remaining strong at 27 per cent. The company also reported contracted future revenue of Dh24.7 billion and strong cash generation with discretionary free cash flow of Dh252 million.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, stated that the company has achieved another strong quarterly result, demonstrating progress in growing their core business of serving the UAE Government’s satcom requirements. The company is also working towards finalizing a US$5.1 billion Capacity and Managed Services Mandate with the UAE Government, as well as completing the procurement of new satellites to continue their success story. Additionally, the recent shareholder approval of the merger with Bayanat will position Space42 as an AI-powered space technology champion in the MENA region.
In light of the recent anomaly experienced on the Thuraya 3 satellite in April 2024, revenue guidance has been revised down to Dh1.5-1.6 billion from Dh1.6-1.7 billion. Despite this revision, Yahsat remains well positioned with a historically strong balance sheet and improved cash position, negative Net Debt, access to a $300 million undrawn bridge facility, and long-term visibility of future cash flows up to 2043. The company continues to be poised for growth capital expenditures, acquisitions, and dividends.
Yahsat’s commitment to providing satellite communication solutions to the UAE Government, along with their strong financial performance and strategic initiatives such as mergers and new satellite launches, positions the company for continued success in the satellite communications industry. With a focus on innovation, efficiency, and customer service, Yahsat is well positioned to maintain its leadership in the market and drive future growth and profitability.
