Exceptional third quarter performance
Abu Dhabi, United Arab Emirates, 8 November 2022: Al Yah Satellite Communications Company PJSC (“Yahsat” or “the Group”), the UAE’s flagship satellite solutions provider listed on the Abu Dhabi Securities Exchange (“ADX”; under symbol: YAHSAT, ISIN: AEA007501017), today announced its consolidated financial results for the nine-month period ended 30 September 2022.
Yahsat delivered another set of exceptional results with third quarter revenues and EBITDA soaring by 16% and 21% respectively year-on-year, underpinned by a stellar performance in its Managed Solutions business. This business, together with the stable, long-term contracted Infrastructure business, serves the requirements of the UAE Government, including government related bodies and entities in the UAE, for secure satellite communications capacity and end-to-end managed services.
Highlights for the nine-month period include:
- Revenue of AED 1.2 billion [USD 315 million], up 11% year-on-year, underpinned by double-digit growth in Managed Solutions and Mobility Solutions
- Adjusted EBITDA of AED 694 million [USD 189 million], up 10% year-on-year, delivering a superior margin of over 60%
- Normalised Net Income of AED 278 million [USD 76 million], up 39% year-on-year, achieving a strong margin of 24%
- Contracted future revenue of AED 7.6 billion [USD 2.1 billion], equivalent to more than 5 times annual revenue for the full year 2021
- Robust financial position with negative net debt and high visibility on future cash flows underpins ability to invest in growth and sustain attractive dividend policy
- On track to grow full year 2022 dividend by at least 2% to AED 16.12 fils [USD 4.39 cents] per share or AED 393 million [USD 107 million] – 50% of this amount was recently paid as an interim dividend
- Full year revenue, Adjusted EBITDA and Discretionary Free Cash Flow guidance remains unchanged
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented on the Group’s latest financial results:
“Yahsat has delivered another excellent performance with third quarter revenue and EBITDA growth accelerating compared to the first half of 2022. Our core Government business has performed particularly well with quarterly revenues in our Managed Solutions business more than doubling year-on-year. Through the procurement of the T4-NGS satellite, which we expect to launch in the first half of 2024 and enter operations in the first half of 2025, we remain well positioned to meet the UAE Government’s increasing demand for advanced satellite communication solutions. T4-NGS will also strongly support our commercial operations in Mobility Solutions, which achieved double digit revenue growth during the first nine months of the year.
The potential procurement of two new satellites, Al Yah 4 and Al Yah 5, remains under consideration for launch in 2026 which will secure continuity of service well beyond the lifetime of our existing fleet.
Our industry is witnessing an exciting period of significant innovation and investment. Yahsat is in a strong financial position with a robust balance sheet and a large and visible backlog of contracted future revenues, providing it with the capacity to invest and pursue future growth opportunities. Our recent investment and commercial agreement with eSAT Global to develop a platform for low and very low data rate IoT sensing and tracking devices is an example of the proactive role that Yahsat is playing in shaping the industry’s future development.”
The full set of third quarter financial disclosures, including a more detailed Management Discussion and Analysis report, can be found within the Investor Relations section on Yahsat’s website.
Note to Editors:
Normalised Net Income is net income adjusted for material, one-off items recorded during the current and comparative periods that would otherwise distort the underlying, like-for-like performance of the business. 9M 2022 Normalised Net Income of AED 278 million [USD 76 million] has been adjusted for a non-cash impairment (AED 149 million [USD 41 million]) in the Group’s equity-accounted joint-venture in HPE Brazil, in which the Group owns a non-controlling 20% stake. This reflected a rapid deterioration in the global macro-economic environment, which significantly increased the discount rate used in assessing the recoverable amount of this investment. Similarly, 9M 2021 Normalised Net Income of AED 200 million [USD 54 million] has been adjusted for one-off costs relating to the prior year debt refinancing (AED 26 million [USD 7 million]) and IPO related costs (AED 15 million [USD 4 million]).