Yahsat reports AED369 million in record Q1-23 revenues
Yahsat, a satellite solutions provider based in the UAE and listed on the Abu Dhabi Securities Exchange, announced its financial results for the first quarter of 2023. The company reported a record revenue of AED 369 million (equivalent to USD 100 million), which is a 2% increase compared to the same period last year. Yahsat’s EBITDA and net income also showed a year-on-year increase of 4% and 35%, respectively, and on a normalised basis, EBITDA and net income surged by 8% and 46%, respectively.
The Managed Solutions segment was the primary driver of the strong performance, with a significant increase of 29% in revenue to AED 72 million (equivalent to USD 20 million) year-on-year. Infrastructure, the company’s largest business segment, also delivered stable and predictable returns, reporting AED 220 million (equivalent to USD 60 million) in revenue for the period, 1% higher than the previous year.
Yahsat reported a contracted future revenue of AED 7.0 billion (equivalent to USD 1.9 billion), which is equivalent to 4.4 times last-twelve-month revenue. The company’s balance sheet showed a negative net debt, a strong cash position, and long-term visibility of future cash flows, supporting Yahsat’s investment in organic growth and acquisitions, without impacting its progressive dividend policy.
Yahsat’s CEO, Ali Al Hashemi, said that the company had a strong start to the year, with a focus on growing both the core government business and commercial segments while optimizing costs across the Group. The company plans to launch its Thuraya-4 NGS satellite in 2024, followed by two potential new satellites, Al Yah 4 and Al Yah 5, presenting unique growth opportunities.
Yahsat is also progressing 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. Yahsat’s unique backlog of future revenues and robust balance sheet places the company in a strong position to drive its future ambitions and continue delivering sustainable long-term growth.
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