Yahsat Reports Record Revenue and Strong EBITDA Growth Amid Tax Impact

Yahsat, a prominent player in satellite communications, has announced a record revenue of USD 101 million for the period, marking a 1% increase compared to the previous year. EBITDA surged by 58% to USD 96 million, while net income nearly doubled to USD 53 million. On a normalized basis, which adjusts for one-off items, EBITDA rose 7% to USD 67 million, although net income fell by 8% to USD 27 million due to the introduction of a UAE corporate tax this year.

The company’s robust performance was driven by revenue growth in two key segments. The Infrastructure segment, which provides communications capacity under a long-term contract with the UAE Government, saw a 1% increase in year-on-year revenues. The Managed Solutions segment, delivering satellite communications solutions to the UAE Government and related entities, experienced a significant 19% revenue growth, along with improved margins. Conversely, the Mobility Solutions segment, focused on mobile satellite services, faced lower revenues due to reduced equipment sales. Data Solutions, the smallest segment, saw a decline in revenues due to fewer subscribers.

The company’s contracted future revenue stands at USD 6.7 billion, reflecting strong future cash flow visibility and an improved cash position of USD 615 million. With negative net debt of USD 162 million and expected advance payments of USD 1 billion, Yahsat is well-positioned to fund growth capital expenditures and dividends. Despite a revised revenue guidance range of USD 415-435 million due to an anomaly with the Thuraya 3 satellite, Yahsat remains optimistic about its full-year performance, reiterating its guidance for EBITDA, cash flow, and capital expenditures.