Yahsat’s net income increases by 50.7% in H1 2022


The company raised its projected revenue for 2022 to at least $420 million, keeping the high end unchanged at $440 million.

With revenue of $107 million in the second quarter of 2022, UAE satellite operator Yahsat’s growth momentum continued with a 6.9% year-on-year increase. This translated into first-half 22 revenue growth of 8.1% year-over-year to $206 million.

Both managed solutions and mobility solutions performed well with first-half 2022 revenue up 35.1% and 24.1% respectively, the company said.

In the second quarter of 2022, adjusted EBITDA of $64 million increased 3.9% year-on-year, generating a margin of 59.8%, while net income (profit attributable to shareholders) of $25 million increased by 77.9% year-on-year. Year-to-date, the group delivered first-half adjusted EBITDA growth of 5.3% and net profit growth of 50.7%, resulting in a strong net profit margin of 22. 1%.

As of June 30, 2022, the group’s future contracted revenue remained strong at over $2.1 billion, or approximately 5.2x fiscal 2021 annual revenue, representing an increase of 4. 1% year-to-date, backed by $247 million over five years. managed services mandate awarded by the Government of the United Arab Emirates in February 2022.

Commenting on the revenue, Musabbeh Al Kaabi, President of Yahsat, said: “Amid challenging global economic headwinds, we are delighted to record our highest ever revenue in the first half while significantly increasing adjusted EBITDA and net income. This reflects the strength of our business, underpinned by strong contract future revenues and positive momentum across all operating segments. In light of our strong year-to-date performance, the board’s confidence in future cash flow generation, the ability to grow the business and the financial strength of the business, we reaffirm our commitment to delivering attractive returns to shareholders. »

Ali Al Hashemi, CEO of Yahsat, added, “Yahsat delivered outstanding results, recording its highest revenue in the first half and demonstrating our performance-driven culture to deploy innovative capabilities and grow the business. Our future contracted revenue exceeds $2.10 billion, or 5.2 times annual revenue in fiscal 2021. Looking ahead, we remain on track to bring our next-generation satellite into commercial service , Thuraya 4-NGS, in the second half of 2024, while two new satellites, Al Yah 4 and Al Yah 5, are under study for launch in 2026. We remain very confident in our short and long-term prospects, and have accordingly raised the lower limit of our revenue guidance for fiscal year 2022, while reiterating our commitment to paying a progressive dividend.

We remain committed to pursuing and launching new growth opportunities across the business and are confident that Yahsat’s strong balance sheet, business resilience and track record of exceptional results will enable us to capture significant value. to stimulate long-term growth.

Yahsat reiterates its commitment to increase its dividend by at least 2% per year, reflecting the board’s confidence in the generation of cash flow and the overall financial strength of the company. For the 2022 financial year, the total expected dividend is at least 16.12 fils per share [US Cents 4.39], split into two equal installments payable around October 2022 and May 2023 respectively. This represents a total dividend payment of $107 million. The company’s dividend policy is well supported by its strong cash conversion (93.1% in 1H22), its solid balance sheet (0.9x Net debt/EBITDA as of June 30, 2022) and its solid discretionary free cash flow ( which is expected to be approximately twice the fiscal year 2022 dividend payment).

Given the strong H1 22 performance, the company is now raising its 2022 revenue guidance to at least $420m, with the high end unchanged at $440m.

Infrastructure accounted for around 55% of group revenue in the second quarter of 2022, primarily comprised of a 15-year long-term capacity services agreement with the UAE government. Overall revenue remained broadly flat at $59 million. The Infrastructure business provides visibility into future cash flows with contractual future revenues of approximately $1.8 billion as of June 30, 2022, which includes a 15-year T4-NGS capacity service agreement worth of $708 million that will support revenue growth from 2024.

Managed solutions, which contributed around 22% of group revenue, continued their performance with Q2 2022 revenue up 41.4%, generating first-half revenue of 39 million dollars, a 35.1% year-over-year increase. In the second quarter of 2022, the company continued to increase its future contractual revenues with the award of other contracts, including a mandate to design and supply advanced satellite communications for the United Arab Emirates government platforms. worth $8 million.

Mobility Solutions, which accounts for approximately 17% of group revenue, had another successful quarter with Q2 2022 revenue up 7.8% year-on-year. First-half revenue exceeded the prior year by 24.1%, with strong growth in service and equipment revenue. Services revenue grew 6.5% with double-digit increases in several areas of the business, including voice, data and intercarrier services. At the same time, equipment revenue, which grew 95%, continued to benefit from the three-year, $86 million distribution agreement entered into in 2021.

YahClick, which accounted for around 5% of group revenue, saw its revenue decline slightly by 4.4% year-on-year in the first half, mainly due to the end in July 2021 of a collaboration agreement. multi-year opportunistic capability that brought in $2 million. of revenue in H1 21. The business continued to build a solid foundation for future growth with a subscriber base in the consumer broadband business growing 11% year-to-date and by 24% compared to the same period last year, supported by the expansion across the Africa region.


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