Abu Dhabi’s Space42 looks to get profit growth back on track

Dubai: The UAE satellite services company Space42 working on the numbers to follow up an ambitious merger.

The Abu Dhabi company recorded a ‘significant’ rise in margin to 50% after recording $317 million as EBITDA. The cash position closed 2024 at over $1.1 billion. Space42 was created through the merger of ADX listed Yahsat and Bayanat last year.

“Since formation, the company has made significant progress in executing its strategy,” said a statement. “The strategy is built on four key objectives: becoming the preferred partner for premium geospatial data; leading in geospatial intelligence AI platform services; establishing leadership in non-terrestrial mobile connectivity; and reinforcing its position as a provider of secure connectivity solutions.”

The pro forma Space42 revenues for 2024 came to $629 million, a 19% drop. This was ‘primarily due to temporary timing shifts in execution of a major multi-year program within Bayanat Smart Solutions and the Thuraya-3 service anomaly within Yahsat Space Services’, said a statement.

The net profit totaled $166 million, marginally lower than 2023’s $174 million, from the ‘first-time adoption of UAE corporate tax’.

This year and beyond, more deals from the UAE government is helping the growth ride. In November last, the company brought forward the procurement of two next-gen Geo satellites – Al Yah 4 and Al Yah 5 – after a $5.1 billion, 17-year contract from the government.

According to Karim Sabbagh, Managing Director of Space42, “In just a few months since its founding, Space42 has significantly enhanced its upstream and downstream Earth Observation capabilities, reinforced its leadership in secure connectivity solutions, and laid the foundation for its next-generation mobile satellite solutions capabilities with the launch of the Thuraya-4 satellite.”

Of course, there is also the backing from the contracted future revenues of more than $7 billion, which includes the $5.1 billion UAE Government agreement signed in November.