Yahsat, the UAE-based satellite solutions provider listed on the Abu Dhabi Securities Exchange, announced its financial results for Q1-23. The company achieved year-on-year growth in revenue, EBITDA, and net income, with increases of 2%, 4%, and 35%, respectively.
On a normalized basis, EBITDA and net income surged by 8% and 46%, respectively. In Q1-23, Yahsat recorded revenues of AED 369M ($100M), which is the highest in the company’s history. The Managed Solutions segment saw revenue increase significantly by 29% year-on-year to AED 72M ($20M), while the Infrastructure segment, the company’s largest business segment, reported stable and predictable returns with revenues of AED 220M ($60M), 1% higher than the prior year.
The company achieved revenue of AED 369M ($100M), a 2% increase year-on-year, driven by strong growth of 29% in the Managed Solutions segment, as well as growth in the Infrastructure and Data Solutions businesses. Additionally, the company reported a normalized EBITDA of AED 231M ($63M), up 8% year-on-year, with a margin of 63%. The normalized net income was reported as AED 108M ($29M), up 46% year-on-year, with a margin of 29%.
Yahsat also reported contracted future revenue of AED 7.0B ($1.9B), equivalent to 4.4 times the last twelve-month revenue. The company’s balance sheet is robust, with negative net debt and a strong cash position, providing long-term visibility of future cash flows. This allows Yahsat to invest in organic growth and opportunistic acquisitions without impacting its progressive dividend policy, according to WAM.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented: “Yahsat had a strong start to the year with continued focus on growing both our core government business and commercial segments, whilst optimizing costs across the Group.”
“The upcoming Thuraya-4 NGS satellite, due to be launched in 2024, followed by two potential new satellites, Al Yah 4 and Al Yah 5, reinforce this direction and present unique growth opportunities.”
He added, “We are also working to progress 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”.
“The satellite industry is witnessing substantial investments as exciting new products and applications are brought to the market whilst the largest satellite operators consolidate to confront the transforming, competitive landscape. Our unique backlog of future revenues, reaching AED 7.0B [$1.9B] or 4.4 times last twelve-month revenues, as well as a robust balance sheet place us in a strong position to drive our future ambitions and continue delivering sustainable long-term growth.”
