Al Yah Satellite Communications, better known as Yahsat, said its net profit increased 78% in the second quarter.
Revenue increased 7% to $106.7 million, primarily driven by the company’s Managed Solutions and Mobility Solutions businesses.
Net profit attributable to shareholders in the three-month period to the end of June was Dh93 million ($25.32m), the company said on Tuesday in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) climbed by 4 percent a year to Dh235m, generating a 59.8 percent Ebitda margin.
Revenue for the reporting period rose by 7 percent to Dh392m, driven primarily by the company’s managed solutions and mobility solutions businesses. Infrastructure accounted for more than half of the group revenue in the quarter.
Yahsat’s first-half revenue, meanwhile, reached Dh755m, increasing more than 8 percent from the year-ago period.
The company’s net profit attributable to shareholders in the six-month period stood at Dh167m, up more than 50 percent from the same period in 2021.
“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,” said Ali Al Hashemi, group chief executive of Yahsat.
“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.”
The group’s contracted future revenue stood at more than Dh7.7 billion, about 5.2 times its annualised revenue.
Despite challenging global economic headwinds, Yahsat’s strong performance “reflects the strength of our business underpinned by strong contracted future revenue and positive momentum across operating segments”, said Musabbeh Al Kaabi, chairman of Yahsat.
Founded in 2007, Yahsat operates in more than 150 countries across five continents. Its five satellites reach more than two-thirds of the world’s population.
In October, Yahsat was appointed by the UAE government to conduct a detailed assessment of two new planned satellite launches by 2026, a move that would help it “further bolster its contracted future revenues and secure its longer-term financial outlook”, the company said at the time.
One of the major projects that Yahsat is working on is the Thuraya 4 Next Generation satellite (T4-NGS, which is scheduled for launch next year.
The satellite is expected to commence offering commercial services in the second half of 2024.
Overall, about 85 percent of Yahsat’s Dh698m projected capital expenditure and investments in 2022 is expected to relate to the T4-NGS programme.
In April, Yahsat’s shareholders approved the company’s updated dividend policy that allows the payment of semi-annual payouts going forward.
For the 2022 financial year, the company is expected to pay a total dividend of Dh393m, or 16.12 fils per share, split into two equal installments that will be paid around October this year and in May 2023, the company said in the statement.
Al Hashemi said, “We are very positive about both our near-term and long-term outlook and reaffirmed our commitment to pay a progressive dividend while raising the floor of our earnings guidance for fiscal 2022 accordingly.
