Al Yah Satellite Communications Company (Yahsat) reported stable revenue and an increased EBITDA and net income for the six months ending 30 June.
In filing its financial results to Abu Dhabi Securities Exchange, Yahsat reported revenue of AED753 million ($205 million). EBITDA, on a normalised basis, increased by 3 percent year-on-year to AED460 million ($125 million) and net profit was up 5 percent to AED175 million ($48 million).
Mobility Solutions, Thuraya’s business providing mobile satellite services using the L-band spectrum, recorded strong double-digit growth of 12 percent in the second quarter, driven by higher equipment sales. That trend is expected to continue into the third quarter and help achieve revenue growth.
The group delivered revenue growth in infrastructure, its largest segment providing communications capacity to the UAE government, and data solutions, offering satellite-based broadband data solutions. Managed Solutions, providing value-added satellite communications solutions primarily to the UAE government and related entities, maintained revenues versus an exceptionally strong 2022.
Yahsat was excited about the future with several of its high-capex projects nearing completion date, including the Thuraya-4 NGS satellite procurement programme, which remains on track to be launched in the first half of 2024.
Yahsat: Advancing satellite procurement and growth
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, also pointed that all initial activities towards procuring Al Yah 4 and 5 satellites have been completed.
Al Hashemi commented: “Yahsat continues to improve its business operations and profitability, and we remain focused on growing both our core government business and commercial segments, whilst controlling and optimising costs across the group.
“In addition to completing the Thuraya-4 NGS satellite procurement programme, we have signed an Authorisation-to-Proceed (ATP) with Airbus to commence initial activities relating to the procurement of the Al Yah 4 and Al Yah 5 satellites. We are also in advanced negotiations with the UAE government to secure a long-term contract that would significantly increase and extend our backlog of contracted revenues beyond 2040.
“We have also commenced work on establishing a formal partnership with Bayanat to offer Earth Observation (EO) capabilities using, in the first phase, synthetic aperture radar (SAR) technology, which provides higher resolution data than conventional sensors. This partnership aims to develop a constellation of five satellites, with the first satellite expected to be launched in the first half of 2024.”
The satellite industry continues to witness substantial investments and the development of new business models. These forces are driving industry consolidation and the necessary emergence of larger and stronger players.
In the filing, Yahsat added that “it remains in a strong position to take advantage of these developments, underpinned by our unique backlog of future revenues and our historically strong and robust balance sheet.”
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