Abu Dhabi, UAE–Yahsat, the UAE’s flagship satellite-solutions provider, has recorded an increase in net profit to $75 million in the first nine months of 2023
Revenue and Normalised EBITDA grew 3% for the first nine months of the year versus the prior year to reach $323 million and $194 million respectively.
Underpinning this impressive performance were historically strong results in Mobility Solutions, the Thuraya business providing mobile satellite services using L-band spectrum, which recorded revenue growth for the nine-month period of 22% and third quarter growth of 81% versus the prior year, driven by higher equipment sales and service revenues.
Meanwhile 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, providing complete value-added satellite communications solutions, primarily to the UAE Government and related entities, reported slightly lower revenues mainly due to an exceptionally strong comparative period although remains well positioned to deliver full year revenues in line, or better, than prior year.
Data Solutions, offering satellite-based broadband data solutions, saw marginally lower revenues from fewer equipment sales but recorded a significant improvement in underlying operating profitability.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented: “The third quarter has been one of several historic achievements which reinforce the company’s future growth trajectory. Our reported revenue growth for the nine-month period underpinned by one of the strongest third quarters on record has resulted in improved financial guidance for 2023 and means that we are well positioned to record our strongest ever performance for the full year. Our financial position with record low leverage has never been stronger and continues to support our attractive progressive dividend policy.”
He added: “The construction of the Thuraya-4 NGS satellite remains on track for launch in 2024 and entry into service in H1 2025, with new advanced capabilities that will allow us to offer additional applications to our customers. Our largest ever contract award during the quarter – an AED 18.7 billion [USD 5.1 billion] satellite capacity and managed services mandate from the UAE Government that includes the procurement of two new satellites, Al Yah 4 and Al Yah 5, has propelled our contracted future revenues to an all-time high and will support our core government business going forward whilst securing significant predictable cashflows all the way out to 2043. “
“This is a very exciting time for Yahsat. These achievements continue to differentiate our investment case amongst regionally-listed peers and within the global satellite industry, which continues to witness significant transformation. We remain in a strong position to take advantage of value accretive opportunities, underpinned by our unique backlog of future revenues and our historically strong balance sheet,” he said.