Al Yah Satellite Communications Company PJSC (Yahsat) has unveiled its consolidated financial results for the full year ending December 31, 2023.
Yahsat’s revenue grew 6 percent year-on-year to a record AED1.7 billion ($462.8 million) in 2023. Meanwhile, its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 3 percent to AED977 million and net income grew 68 percent to AED405 million. On a normalized basis, adjusting for material, one-off items to allow like-for-like comparison, EBITDA grew 5 percent to reach a record of AED996 million. Meanwhile, net income grew 9 percent to a record AED424 million ($116 million).
Revenue growth
Yahsat’s financial performance was underpinned by revenue growth across all operating segments, marking a significant achievement since its initial public offering in July 2021. Yahsat’s infrastructure segment, serving the UAE government, recorded a year-on-year revenue growth of 1 percent.
Meanwhile, the mobility solutions segment, offering mobile satellite services, recorded its highest-ever revenues since Yahsat’s acquisition of Thuraya in August 2018. This segment’s revenues grew 23 percent driven by a surge in equipment sales and higher service revenues. Yahsat’s managed solutions and data solutions segments also reported revenue growth of 2 percent and 6 percent, respectively, highlighting the strength and diversification of Yahsat’s business model.
Strategic milestones
Commenting on the achievement, Musabbeh Al Kaabi, chairman of Yahsat, stated: “Yahsat is entering a new phase of its journey following the award of its largest-ever government mandate, covering the procurement of two new satellites, Al Yah 4 and Al Yah 5. These new satellites represent a substantial upgrade to the group’s current fleet and will provide completely new capabilities and applications to support future growth.”
Al Kaabi also highlighted Yahsat’s upcoming launch of Thuraya 4 in the second half of 2024. In addition, he highlighted Yahsat’s proposed merger with Bayanat, which will create an AI-powered space technology champion with global reach. “To be rebranded Space42 upon completion of the merger, the merged entity will provide vertically integrated, AI-powered geospatial and mobility solutions, satellite communications, and business intelligence,” Al Kaabi added.
For his part, Ali Al Hashemi, group CEO of Yahsat, commented: “2023 was a year of major achievement for Yahsat. Yahsat recorded its strongest-ever financial results, surpassing management guidance and analyst consensus figures across key financial metrics.” He also expressed optimism about the future, citing the renewal of the company’s fleet with three new, advanced, data-centric satellites and its strategic focus on serving the UAE government’s requirements and exploring new growth opportunities.
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