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ABU DHABI / WAM
Al Yah Satellite Communications Company (Yahsat) announced on Tuesday its consolidated financial results for the nine months ended on September 30.
Revenue and Normalised Ebitda grew 3% for the first nine months of the year versus the prior year to reach AED1.2 billion [$323 million] and AED713 million [$194 million], respectively. Net Income more than doubled whilst profit was in line with the prior year’s period at AED274 million [$75 million].
Underpinning this performance were strong results in Mobility Solutions, the Thuraya business providing mobile satellite services using L-band spectrum, which recorded revenue growth for nine months of 22% and Q3 growth of 81% versus the prior year, driven by higher equipment sales and service revenues.
Meanwhile Infrastructure, the group’s largest segment providing communications capacity to the UAE Government by means of an index-linked long-term contract, continued to grow its year-on-year revenues by 1%.
Managed Solutions, the group’s second-largest segment, providing complete value-added satellite communications solutions, primarily to the UAE Government and related entities, reported slightly lower revenues mainly due to an exceptionally strong comparative period, although it remains well positioned to deliver full-year revenues in line, or better, than prior year.
Data Solutions, offering satellite-based broadband data solutions, saw marginally lower revenues from fewer equipment sales but recorded a significant improvement in underlying operating profitability.
Ali Al Hashemi, Group CEO of Yahsat, commented, “The third quarter has been one of several historic achievements reinforcing the company’s future growth trajectory. Our reported revenue growth for the nine months, underpinned by one of the strongest third quarters on record, has improved financial guidance for 2023 and means that we are well-positioned to record our strongest-ever performance for the full year.”
Our financial position with record low leverage has never been stronger and continues to support our attractive progressive dividend policy. The construction of the Thuraya-4 NGS satellite remains on track for launch in 2024 and entry into service in H1 2025, with new advanced capabilities that will allow us to offer additional applications to our customers.
The company’s largest ever contract award during the quarter — an AED18.7 billion [$5.1 billion] satellite capacity and managed services mandate from the UAE Government that includes the procurement of two new satellites, Al Yah 4 and Al Yah 5, has propelled the contracted future revenues to an all-time high and will support the company’s core government business going forward whilst securing significant, predictable cashflows out to 2043.