
Abu Dhabi, United Arab Emirates, 9 August 2022: Al Yah Satellite Communications Company PJSC ( Yahsat or the Group ) listed on the Abu Dhabi Securities Exchange ( ADX ) under (SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE's flagship satellite solutions provider, today announced its financial results for the six-month period ended 30 June 2022 ( 1H22 ).
1H22 Highlights
Revenue of AED 755 million [USD 206 million], up 8.1% year-on-year, underpinned by double-digit growth in Managed Solutions and Mobility Solutions
Adjusted EBITDA of AED 448 million [USD 122 million], up 5.3% year-on-year, delivering a robust margin of 59.3%
Net Income of AED 167 million [USD 45 million], up 50.7% year-on-year, driving a strong net margin of 22.1%
Contracted future revenue of more than AED 7.7 billion [USD 2.1 billion], equivalent to 5.2 times FY2021 annual revenue
Strong financial position and high visibility on future cash flows underpin ability to invest in growth and sustain attractive dividend policy
On track to grow FY2022 dividend by at least 2% to 16.12 fils [USD 4.39 cents] per share or AED 393 million [USD 107 million], split into two equal installments payable around October 2022 and May 2023
Lower end of FY2022 revenue guidance increased to AED 1,542 million [USD 420 million] from AED 1,524 million [USD 415 million]; all other guidance remain unchanged
Musabbeh Al Kaabi, Chairman of Yahsat, commented:
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. This reflects the strength of our business underpinned by strong contracted future revenue and positive momentum across operating segments. In light of our strong year-to-date performance, the Board of Directors' confidence in future cash flow generation, ability to grow the business and financial strength of the Company, we are reiterating our commitment to deliver attractive shareholder returns.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented:
Yahsat has delivered exceptional results, recording its highest-ever first half revenue and demonstrating our performance-driven culture to deploy innovative capabilities and grow the business. Our contracted future revenue exceeds AED 7.7 billion, equivalent to 5.2 times FY2021 annual revenue. Looking ahead, 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. 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.
We remain committed to pursuing and launching new growth opportunities across the business and we are confident that Yahsat's robust balance sheet, business resilience and track record in delivering exceptional results will enable us to capture significant value to drive long-term growth.
Strong first-half results
Yahsat's growth momentum continued in 2Q22 with revenue of AED 392 million [USD 107 million], an increase of 6.9% year-on-year. This resulted in 1H22 revenue growth of 8.1% year-on-year to AED 755 million [USD 206 million]. Both Managed Solutions and Mobility Solutions performed exceptionally well with 1H22 revenues increasing by 35.1% and 24.1% respectively.
2Q22 Adjusted EBITDA of AED 235 million [USD 64 million] increased by 3.9% year-on-year, generating a healthy margin of 59.8%, while net income (profit attributable to the shareholders) of AED 93 million [USD 25 million] increased by 77.9% year-on-year. On a year-to-date basis, the Group recorded 1H22 Adjusted EBITDA growth of 5.3% and an increase in net income of 50.7%, resulting in a solid net income margin of 22.1%.
As at 30 June 2022, the Group's contracted future revenue remained strong at more than AED 7.7 billion [USD 2.1 billion], equivalent to around 5.2 times FY2021 annual revenue representing an increase of 4.1% since the start of the financial year, underpinned by the 5-year AED 909 million [USD 247 million] managed services mandate awarded by the UAE Government in February 2022.
Attractive dividend outlook
Yahsat reiterates its commitment to grow its dividend by at least 2% per year, reflecting the Board of Directors' confidence in the cash flow generation and overall financial strength of the business. For financial year 2022, the total expected dividend is a minimum of 16.12 fils per share [US Cents 4.39], split into two equal instalments payable around October 2022 and May 2023 respectively. This represents a total dividend payment of AED 393 million [USD 107 million]. The Company's dividend policy is well supported by its high cash conversion (93.1% in 1H22), robust balance sheet (0.9x Net Debt/EBITDA as at 30 June 2022) and a strong discretionary free cash flow1 (expected to be approximately two times FY2022 dividend payment).
Increasing minimum revenue guidance
In view of the strong 1H22 performance and considering that approximately 90% of the remaining projected revenue for FY2022 is already secured (based on the low end of its revenue guidance), Yahsat has decided to narrow the range of its FY2022 guidance provided on 1 March 2022. The Company now raises its projected 2022 revenues to at least AED 1,542 million [USD 420 million] with the upper end of the range unchanged at AED 1,616 million [USD 440 million]. All other guidance remain unchanged.
Senior management appointment
On 1 July 2022 (a post-period event), Yahsat announced the appointment of Mr. Sulaiman Al Ali as Chief Commercial Officer ( CCO ). Mr. Al Ali has assumed the role having been with Yahsat for eight years, previous
More from Yahsat
22/09/2023
Abu Dhabi, United Arab Emirates, 22 September 2023: Al Yah Satellite Communicati...
20/09/2023
On track to grow dividends by at least 2% to a total of AED 402 million [USD 109...
11/09/2023
Partnership aims to expand broadband penetration in Sub-Saharan Africa
Abu Dhabi, UAE, 11 September 2023: YahClick, the Data Solutions subsidiary of the UAE...
29/08/2023
Yahsat proudly celebrates Emirati Women's Day, recognizing accomplishments o...
11/08/2023
Yahsat's Commercial team is exploring ways to take advantage of growing Chin...
08/08/2023
Normalised EBITDA grew 3% versus prior year to AED 460 million and Normalised Net Income 5% to AED 175 million delivering improved margins
Abu Dhabi, United Ar...
13/07/2023
Khalid Al Kaf, Yahsat's Chief Operations Officer, accepted the TDRA Partner ...
22/06/2023
Chinese embassy officials commend Yahsat for its support in the rescue of five f...
14/06/2023
Abu Dhabi, UAE, 14 June 2023: Thuraya Telecommunications Company, the mobility a...
08/06/2023
Yahsat Asia Week' showcased innovative solutions of its mobility arm, Thuray...
23/05/2023
Demonstration of low-power IoT messages' transmission over Thuraya's sat...
17/05/2023
New program provides further momentum to UAE space economy sector
The program a...
08/05/2023
Net income and EBITDA both grew by 35% and 4% respectively year-on-year
Abu Dhabi, United Arab Emirates, 8 May 2023: Al Yah Satellite Communications Company PJ...
18/04/2023
Yahsat has been recognized with the prestigious accolade in the highly competiti...
03/04/2023
Thuraya agrees heads of terms for investment in leading IoT and LEO network oper...
16/03/2023
Abu Dhabi, UAE March 16, 2023 Al Yah Satellite Communications Company PJSC (...
01/03/2023
MoU signed between national leaders at IDEX 2023 to build on Yahsat's system...
28/02/2023
Key financial guidance targets met or exceeded
Contracted future revenues of AED 7.3 billion [USD 2.0 billion]
Equivalent to 4.6 times annual revenue
Robust...
23/02/2023
The strategic partnership is aimed at building and operatingstrategic earth obse...
22/02/2023
Collaboration between two national industry leaders to expand services for UAE and MENA region airborne market creating a one-stop-shop for relevant platform ...
17/02/2023
The successful completion of the Critical Design Review is a key milestone in th...
15/02/2023
Partnership demonstrates collaboration between two leading national champions that will support the national space sector for both government and commercial cus...
11/01/2023
The game-changing solution, Thuraya MarineStar, from Yahsat's mobility arm T...
23/12/2022
Yahsat's mobility solution Thuraya XT-LITE was utilized to save the lives of seven fishermen who were stranded in waters between the Philippines and Ind...
08/11/2022
Exceptional third quarter performance
Abu Dhabi, United Arab Emirates, 8 Novem...
07/11/2022
Partnership to support Abu Dhabi based startups with commercial opportunities to...
11/10/2022
Thuraya, Yahsat's mobility business, signs complementary commercial agreement to develop a Next Generation IoT Platform with eSAT Global
Investment in eSAT...
21/09/2022
Yahsat is on track to deliver an increased total dividend of at least AED 393.3 ...
01/09/2022
Pledge seeks to increase engagement from the private sector and companies in the pivot towards decarbonization
21 leading companies across the UAE joined the P...
09/08/2022
Abu Dhabi, United Arab Emirates, 9 August 2022: Al Yah Satellite Communications ...
01/07/2022
In his new capacity, Sulaiman Al Ali will lead both YahClick, Yahsat's data ...
11/05/2022
1Q22 revenue of AED 362.5 million [USD 98.7 million], up 9.4% year-on-year
1Q22 Adjusted EBITDA of AED 213.4 million [USD 58.1 million], up 6.8% year-on-year ...
29/04/2022
Yahsat has been appointed to enable UAE Government platforms with a satellite co...
12/04/2022
All resolutions approved at AGM including amendment to dividend policy allowing ...
08/03/2022
MoU signed to collaborate on line-fitting unmanned vessels and pre-qualifying Ya...
07/03/2022
Yahsat and Edge have agreed to line-fit pre-qualified Comms-On-The-Move (COTM) s...
01/03/2022
FY2021 revenue of AED 1.49 billion [USD 407.6 million], increased year-on-year driven by exceptional 4Q21 performance in which revenues grew 7.9% vs. prior year...
14/02/2022
Yahsat will provide managed services for ground satellite communications services and solutions for the next 5 years
Agreement represents an important mileston...
03/02/2022
Yahsat will deliver advanced and secure satellite communication solutions
Yahs...
20/12/2021
Abu Dhabi, 20 December 2021: The collaboration between Emirates Schools Establis...
26/11/2021
Yahsat will provide advanced telecommunication services and solutions to integra...
23/11/2021
Cobham SATCOM to be appointed as the main distributor, on a non-exclusive basis,...
22/11/2021
Abu Dhabi, United Arab Emirates, 21 November 2021: Al Yah Satellite Communications Company PJSC ( Yahsat and, together with its subsidiaries, the Group ), the...
18/11/2021
The MoU establishes a framework to discuss the provision of fixed and maritime V...
17/11/2021
The initiative combines UAE talent and international expertise to create a self-...
15/11/2021
Abu Dhabi, United Arab Emirates, 14 November 2021: Al Yah Satellite Communications Company PJSC ( Yahsat and, together with its subsidiaries, the Group ), the...
08/11/2021
Year to date revenues broadly in line vs prior year with strong momentum going i...
07/11/2021
The MoU brings together Yahsat's advanced upstream satellite capabilities an...
29/10/2021
YahClick expands its satellite broadband enterprise solutions in Nigeria, Zambia...
11/10/2021
The agreements adds significantly to Yahsat's anticipated future cash flows ...