Dubai: The Abu Dhabi satellite firm Yahsat delivered on revenues of Dh755 million in the first six months of 2022, up 8.1 per cent, while net income powered up 50 per cent to Dh167 million. What’s more, the company’s net margin came to a hefty 22.1 per cent.
All of which sets up Yahsat - majority owned by Mubadala - for a solid medium-term, with contracted future revenues of Dh7.7 billion plus, and equal to 5.2 times 2021 annual revenues. This includes the 5-year Dh909 million 'managed services mandate' from the UAE Government in February last.
Against a backdrop of challenging global economic headwinds, we are delighted to record our highest ever first-half revenue whilst significantly growing Adjusted EBITDA and net income
Shareholders will likely see a higher dividend of at least 2 per cent – Dh16.12 fils a share – for a combined Dh393 million. This will be paid out between October and May next.
Yahsat’s five satellites reach more than 80 per cent of the world’s population, enabling broadband, broadcasting, backhauling and mobility solutions. The company has raised its projected full-year 2022 revenues to ‘at least Dh1.54 billion, with the upper end of the range unchanged at Dh1.61 billion. ‘Approximately 90 per cent of the remaining projected revenue for FY2022 is already secured,” a statement said.
Yahsat satellite services are available in more than 150 countries.
Put up the next satellite
"We remain on track to bring into commercial service our next-generation satellite, Thuraya 4-NGS, in the second-half of 2024, whilst two new satellites - Al Yah 4 and Al Yah 5 - are under consideration for launch in 2026," said Ali Al Hashemi, Group CEO of Yahsat.
We remain very confident in both our short-term and long-term outlook and have accordingly increased the lower end of our revenue guidance for FY2022, whilst reiterating our commitment to pay a progressive dividend.
Yahsat's satellite infrastructure services made up around 55 per cent of group revenue in Q2-22, mainly derived from a 15-year long-term 'capacity services agreement' with the UAE Government. Overall revenue remained broadly stable at Dh218 million. Its managed and mobility solutions represented 22 per cent and 17 per cent of revenue during this period.
The company’s dividend policy is 'well supported by its high cash conversion (93.1% in H1-22), robust balance sheet (0.9x net debt/EBITDA as at June 30) and a strong discretionary free cashflow (expected to be approximately two times 2022 dividend payment)'.
