Abu Dhabi’s provider of AI-powered geospatial solutions Bayanat has announced its robust financial results for the first half (H1) of 2024.
Over the first six months of 2024, Bayanat’s revenue reached AED273 million ($74.32 million), representing an 18 percent increase compared to the same period in the previous year. Furthermore, the company’s Q2 revenue witnessed a 23 percent year-over-year increase, demonstrating sustainable growth. Bayanat has remained focused on deploying world-class AI solutions and enhancing geospatial services for its clients. Key contributors to the revenue growth include the company’s Smart Operations Solutions (SOPS) and Smart Geospatial Solutions (SGS).
Profitability and net margin
Bayanat’s Gross Profit for H1 2024 reached AED84 million ($22.86 million), translating to a gross margin of 31 percent, WAM reported. The profits were largely driven by the company’s continued focus on its key segments, including Smart Space Solutions (SPAS), Smart Operations Solutions (SOPS), and Smart Geospatial Solutions (SGS). Net Profit after tax amounted to AED19 million, representing a net margin of 7 percent. Bayanat has also reported significant financial income from investing its excess cash into financial instruments. In accordance with applicable UAE Federal Decree-Laws, the company has recorded a provision for Corporate Tax on its 2024 taxable income.
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Bayanat’s stratgeic investments and merger to become Space42
Hasan Al Hosani, managing director of Bayanat, stated that as they prepare for their groundbreaking merger to become Space42, they have made strategic investments that continue to improve their offerings for their clients. He mentioned that Bayanat’s geospatial intelligence solutions will be a key contributor to Space42’s position as a global space technology champion. Al Hosani also noted that their financial stability and commitment to innovation, R&D, and strategic partnerships will evolve through Space42 as they continue to deliver exceptional shareholder value.
Furthermore, Al Hosani said that the upcoming Bayanat and Yahsat SAR satellite launch, in collaboration with ICEYE, will further strengthen their capabilities in Earth Observation. He stated that this launch will mark a significant milestone in their journey towards expanding their space technology offerings, delivering cutting-edge innovations to their customers, and further solidifying the UAE’s ambitious space strategy.
EBITDA reached AED14 million, representing a margin of 5 percent. Bayanat has continued to invest heavily in research and development and talent acquisition, which have been reflected in the half-year EBITDA performance. While these strategic initiatives have had a short-term impact on EBITDA, they align with the merger rationale and are expected to contribute to the expansion of Space42’s product portfolio and future revenue growth upon the completion of the merger.
Moreover, in December 2023, Bayanat announced its merger with Yahsat to create Space42, aiming to establish a space technology champion. The merger was approved at each company’s respective General Assembly Meetings in April 2024 and is anticipated to be effective in the second half of 2024.
