Yahsat reports robust first
half results for 2024
30 July 2024
Al Yah Satellite Communications
Company PJSC (“Yahsat” or the “Group”), the UAE’s
flagship satellite solutions provider listed on the
Abu Dhabi Securities Exchange (”ADX”, under symbol:
YAHSAT, ISIN: AEA007501017) announced today its
consolidated financial results for the six month
period ended 30 June 2024.
Whilst revenue marginally fell
by 3% versus the prior year to AED 734 million [USD
200 million], EBITDA surged by 25% to AED 566
million [USD 154 million]. Net income also increased
strongly by 62% to AED 269 million [USD 73 million].
On a normalised basis, adjusting for material,
one-off items to allow for like-for-like comparison,
EBITDA was stable versus the prior year at AED 462
million [USD 126 million]. Normalised Net income,
which reached AED 175 million [USD 48 million], also
remained stable versus the prior year
notwithstanding the material impact of UAE corporate
tax which was adopted by Yahsat for the first time
this year.
This resilient performance was
driven by revenue growth across two segments.
Infrastructure, the Group’s largest segment
providing communications capacity to the UAE
Government by means of an index-linked long-term
contract, continued to grow its year-on-year
revenues by 1%. Managed Solutions, the Group’s
second largest segment by revenue, providing
complete value-added satellite communications
solutions primarily to the UAE Government and
related entities, reported impressive revenue growth
of 15%, maintaining robust EBITDA margins of more
than 60% and building on a strong prior year
performance. The Mobility Solutions segment, which
provides mobile satellite services using L-band
spectrum, recorded lower revenues, mainly on fewer
equipment sales following the Thuraya 3 satellite
anomaly in April 2024. Data Solutions, the Group’s
smallest segment, offering satellite-based broadband
data solutions, saw a slight reduction in revenue on
lower subscriber numbers and associated equipment
sales as the business strategically pivots towards
higher margin markets.
Highlights for the period
include:
·
Revenue of AED 734 million [USD 200 million],
3% lower year-on-year with growth achieved in the
Infrastructure and Managed Solutions segments.
·
Normalised EBITDA of AED 462 million [USD 126
million], stable versus the prior year, with an 7%
reduction in the normalised cost base resulting in
an expanded margin of 63% (prior year 61%).
·
Normalised Net Income (profit) of AED 175
million [USD 48 million], stable versus the prior
year, due to higher net finance income absorbing
higher depreciation and the impact of the
introduction of UAE corporate tax (9% rate); margins
remained strong at 24% (prior year 23%).
·
Contracted future revenue of AED 24.5 billion
[USD 6.7 billion], equivalent to approximately 15
times last-twelve-month revenue and only 2% lower
versus the beginning of 2024.
·
Strong cash generation with Discretionary
Free Cash Flow (“DFCF”) of AED 287 million [USD
78 million], slightly lower than the prior
year but well ahead of expectation.
·
Strong balance sheet with a strong cash
position of AED 1.5 billion [USD 398 million], Net
Debt of only AED 115 million [USD 31 million] and
AED 3.7 billion [USD 1 billion] expected in new
advance payments to be received over the
construction period of the Al Yah 4 and Al Yah 5
satellites. The Group also has access to an AED 1.1
billion [USD 300 million] bridge facility, which was
partially drawn down in July, and enjoys long-term
visibility and security of future cash flows up to
2043.
·
Guidance for revenue, EBITDA and cash flow is
reiterated but expected CapEx has been revised lower
for the full year to AED 1.5-1.6 billion [USD
400-430 million] from AED 1.7-1.8 billion [USD
470-500 million] following the signing of the full
procurement contract for Al Yah 4 and Al Yah 5 with
Airbus in June 2024.
Ali Al Hashemi, Group Chief
Executive Officer of Yahsat, commented: “Yahsat has
achieved another set of resilient results,
demonstrating solid growth in our core government
business, offsetting headwinds in our mobile
satellite services segment.
“We continue to progress toward
finalising the full contract for the new US$5.1
billion Capacity and Managed Services Mandate with
the UAE Government and have signed, during the last
quarter, the full procurement contract with Airbus
for two new satellites, Al Yah 4 and Al Yah 5.
Further, we continue to work towards a successful
launch of the Thuraya 4 next generation satellite in
the fourth quarter of this year, which will
significantly upgrade Thuraya’s capabilities and
product line for many years to come.
“Finally, we are looking
forward to completing the merger with Bayanat in the
second half of the year and are finalising plans for
the successful integration of both companies. This
merger will position the new combined entity –
Space42 – as an AI-powered space technology champion
in the MENA region with global reach. For the first
time in our industry, we will combine advanced
satcom solutions and geospatial analytics, operating
communication and Earth Observation satellites
across multiple orbits.”
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