Yahsat 2023 profit rises to $116m on revenue growth

Wam

Al Yah Satellite Communications Company, known as Yahsat, said net income grew 9 percent to AED424 million ($116 million) in 2023, driven by revenue growth across all operating segments.

Revenue grew 6 percent year on year to AED1.7 billion, with all four operating segments exceeding the top end of the previous guidance range of AED1.6-1.7 billion.

Ebitda grew 3 percent annually to AED977 million.

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The Abu Dhabi-listed company estimated its contracted future revenue at AED25 billion, equivalent to 15 times full-year revenue and up from AED7.3 billion in 2022.

Cash position improved to AED2.1 billion, making Yahsat “well positioned” to fund growth capital expenditures and acquisitions, without impacting its dividend policy.

The company has recommended a dividend payout of AED402 million for 2023.

“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, and the upcoming launch of Thuraya 4 in the second half of 2024,” chairman Musabbeh Al Kaabi said.

In addition, the proposed merger between Yahsat and Bayanat, a geographic data and analytics provider, will create an AI-powered space technology champion with global reach, he added. 

The merged entity will be rebranded as Space42, subject to shareholder and regulatory approvals in the second half of 2024.