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The normalised adjusted EBITDA margin improved from 60.4 per cent in H1-2020 to 60.9 per cent in H1 2021. Image Credit: Supplied

Dubai: Al Yah Satellite Communications Company (Yahsat) one of the world’s largest providers of multi-mission satellite communications solutions, reported a net profit of Dh136.3 million in H1-2021, up 28 per cent year on year.

The reported net profit has been adjusted for one-off non-recurring items.

Net income (profit attributable to the shareholders) for the first-half of 2021 was in line with prior year. On a normalised basis, after adjusting for one-off non-recurring items, the Group recorded Normalised Net Income of Dh136.3 million compared to Dh106.6 million for the same period last year.

Although adjusted EBITDA for the first-half of 2021 of Dh425.6 million was Dh18.9 million or 4.2 per cent lower than the prior year, the normalised adjusted EBITDA margin improved from 60.4 per cent in H1-2020 to 60.9 per cent in H1 2021. Operating Free Cash Flow for the first half of the year was Dh408 million.

The solid start we had at the beginning of 2021 has gained further momentum, as demonstrated by our second quarter results. Our strong performance is a resounding testament to the resilience of our businesses, reaching 80 per cent of the global population across five continents with critical connectivity solutions. In parallel, we have balanced service quality and effectiveness with operational excellence and stringent financial management.

- Ali Al Hashemi, Yahsat CEO

Revenue

Revenue for H1-2021 at Dh698.4 million is marginally lower (3.9 per cent) compared to the prior year, but on a quarterly basis, revenues grew strongly in Q20-2021 across the business, illustrating the Group’s resilience and growth potential despite challenging COVID-19 business conditions.

The second quarter 2021 revenues increased by Dh35.8 million compared to Q1-2021, with the majority of the year on year revenue variance relating to Q1-2021 performance.

Revenues from the largest segment, Infrastructure, remained solid on a quarterly basis, with an increase of Dh4.8 million year on year to Dh440.3 million.

Managed Solutions has started to recover in Q2-2021, recording a Dh18.0 million revenue increase compared to Q1-2021.

Despite the challenging trading conditions in its primary markets, the Data Solutions business remains underpinned by strong fundamentals. During H1-2021, YahClick grew its subscriber base by 8 per cent, with further subscriber and business growth expected in the near term after securing three significant new enterprise and telecom customers in Africa during the first half of the year, and continuing with strong momentum as further expansion in Africa is planned for in H2 of this year.

Contract backlog
In June 2021,Yahsat entered into a 15-year T4-Next Generation Satellite Capacity Services Agreement with a government customer in the UAE, adding more than Dh2.5 billion to its committed contract backlog increasing it to over Dh7.7 billion.

The agreement strengthens Yahsat’s highly attractive financial profile, securing future cash flows and underpinning the Group’s stated progressive dividend policy. Moreover, Yahsat maintained a high cash conversion ratio at over 95 per cent for the period ended June 30, driven by CAPEX efficiency and a well-capitalised balance sheet.