The UAE’s leading satellite solutions provider, Yahsat’s revenue for H1 2024, stood at Dh734 million, a 3% decrease compared to the prior year. The ADX-listed company’s EBITDA rose by 25% to Dh566 million, and net income increased by 62% to Dh269 million. On a normalised basis, adjusting for one-off items, EBITDA was Dh462 million, and net income was Dh175 million, both stable compared to the prior year.
The company’s performance was driven by growth in two key segments. The infrastructure segment, Yahsat’s largest, provided communication capacity to the UAE government and saw a 1% revenue increase. Managed solutions, the second largest segment, reported a 15% increase in revenue, maintaining EBITDA margins above 60%. The mobility solutions segment experienced lower revenues due to fewer equipment sales following the Thuraya 3 satellite anomaly in April 2024. The data solutions segment saw a slight reduction in revenue due to lower subscriber numbers and equipment sales as it pivots towards higher-margin markets.
Yahsat reported a contracted future revenue of Dh24.5 billion, approximately 15 times the last 12 months revenue. The company demonstrated strong cash generation with a discretionary free cash flow of Dh287 million, maintaining a robust cash position of Dh1.5 billion and net debt of Dh115 million. Yahsat expects new advance payments of Dh3.7 billion over the construction period of the Al Yah 4 and Al Yah 5 satellites. The company has reiterated its guidance for revenue, EBITDA, and cash flow, with expected CapEx revised lower to Dh1.5- Dh1.6 billion from Dh1.7-Dh1.8 billion.
Additionally, Yahsat signed a full procurement contract with Airbus for two new satellites, Al Yah 4 and Al Yah 5. The company is also progressing towards the launch of the Thuraya 4 next-generation satellite in Q4 2024. The merger with Bayanat AI, approved by shareholders in April 2024, is expected to be completed in the second half of 2024, forming a new entity, Space42. This merger aims to position the combined entity as an AI-powered space technology leader in the MENA region with global reach.