Dubai: Yahsat, the UAE satellite services firm, saw its net income take quite a leap, hitting a record Dh194 million for Q1-2024. Revenues too were at a new high, of Dh371 million.
Yahsat is one-half of a new entity - Space42 - that will be one of the biggest publicly listed space tech companies in the world. Bayanat is the partner in the entity that will be created out of the merger.
Merger update
The shareholder approval for the merger was completed April 25. "We are now working toward completing the merger in the second-half of the year and finalising plans for the successful integration of the two companies," said Ali Al Hashemi, Group CEO. "This merger will usher in an exciting new chapter, positioning 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.”
Net income drop
For Q1-24, after adjusting for one-off items to allow like-for-like comparison, the EBITDA grew 7 per cent to Dh247 million, while net income fell 8 per cent to Dh99 million. This reflected the introduction of UAE's corporate tax.
The revenue gains came from two sets of operations - Infrastructure, which is Yahsat's largest segment. It provides communications capacity to the UAE Government through an index-linked long-term contract. The other major revenue generation was from managed solutions, which provides value-added satellite communications solutions, primarily to the UAE Government and related entities. This grew 19 per cent as well as generated higher margins.
The mobility solutions segment, which provides mobile satellite services using L-band spectrum, recorded lower revenues, principally from lower equipment sales.
A $5.1 billion mandate
“We continue to progress toward finalising the full contract for the new $5.1 billion capacity and managed services mandate with the UAE Government and the related procurement contract with the satellite manufacturer for two new satellites - Al Yah 4 and Al Yah 5," the CEO said. "We are working on completing the procurement of Thuraya 4, to be launched into space in the second-half of this year, which will renew and continue Thuraya’s success story for many more years to come."
