Al Yah Satellite Communications, better known as Yahsat, expects revenue to grow up to eight per cent this year on government contracts, its chief financial officer said.
The Abu Dhabi-listed company, owned by Mubadala Investment Company, expects its 2022 revenue to grow in the range of $420m and 440m. “Somewhere around $430m is reasonable … a growth of around 3 and 8 per cent for the full year,” Andrew Cole told The National in an interview on Tuesday.
The company reported $407.5 million revenue in 2021.
Its managed solutions business, which involves providing satellite communication services to the UAE government, will drive the revenue growth for the year, he said. About 85 per cent of the company’s revenue comes from the UAE market.
Founded in 2007, Yahsat offers multi-mission satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia.
It has a current fleet of five satellites that extend its reach to more than 80 per cent of the world’s population, enabling critical communications such as broadband connectivity, broadcasting as well as mobility solutions.
Yahsat is planning to launch the Thuraya 4 Next Generation Satellite (T4-NGS) in 2024 to boost its operations. The satellite is expected to commence commercial services in the first half of 2025.
T4-NGS was originally expected to launch in the second half of 2023 and start services in the second half of 2024, but the company now expects a delay of up to six months in the delivery of the satellite by Airbus. It did not provide the reason for the delay.
The company is bullish about “growth opportunities” amid the launch of the new satellite and the UAE government’s focus on space exploration and other related projects.
There “is a $700m government contract attached to Thuraya 4, which when it becomes operational will add $50m to our top line from 2025 onwards”, Mr Cole said.
The company is also looking to replace two existing satellites Al Yah 1 and Al Yah 2 with two new satellites, Al Yah 4 and Al Yah 5 in 2026 and “there is a long-term contract attached to that already”, he said.
The new satellites “will operate side by side with Al Yah 1 and Al Yah 2 and ultimately replace them … the continuity of the government business is reasonably secure”.
The UAE government focuses on putting the “UAE at the forefront of space exploration”, which will provide further opportunities for the company, Mr Cole said.
Yahsat also plans to grow its business connected to maritime, oil and gas, Internet of Things, direct to device services and others.
“At the moment we are quite small in maritime, we are very focused on niche areas like the fisheries sector, particularly in Vietnam, we have an ambition to grow that beyond Vietnam to other parts of the South-East Asia region.”
The company is looking at more acquisitions following its investment in eSat Global, a US-based IoT connectivity solutions provider earlier this year.
“We have $600m in cash … in the next year or so there could well be some level of M&A activity at Yahsat,” he said. The company is looking at growing its business, he said.
“We want to protect and defend and nurture our core business, which is UAE government,” he said. “Equally we are looking at growing our commercial business, the data solutions business and some of the key growth areas like IoT and maritime.”
Yahsat on Tuesday reported a 16 per cent jump in its third-quarter revenue to $109m compared to $94.1m for the same period last year as it continues to focus on boosting growth.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the third quarter rose more than 21 per cent to $66.9m, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
It reported a net loss of $10.21m, attributable to the shareholders, for the period compared to a profit of $13.1m during the third quarter of last year, as other operating expenses rose. Profit was also affected as a result of an impairment charge of $40.5m related to an investment in Brazil.
Yahsat's nine-month profit dropped about 19 per cent to $35.1m.
Capex and investments for the year are expected between $150m and $170m, the financial statement showed.
“Our core government business has performed particularly well with quarterly revenue in our managed solutions business more than doubling year-on-year,” Ali Al Hashemi, group chief executive of Yahsat, said.
Through the procurement of the T4-NGS satellite, “we remain well positioned to meet the UAE government’s increasing demand for advanced satellite communication solutions”.
The satellite operator raised about $731m from its initial public offering last year.
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
Malcolm & Marie
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Starring: John David Washington and Zendaya
Three stars
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A list of the animal rescue organisations in the UAE
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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WOMAN AND CHILD
Director: Saeed Roustaee
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Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
UAE currency: the story behind the money in your pockets
Match info
Karnataka Tuskers 110-3
J Charles 35, M Pretorius 1-19, Z Khan 0-16
Deccan Gladiators 111-5 in 8.3 overs
K Pollard 45*, S Zadran 2-18
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
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On sale: now
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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ENGLAND SQUAD
Goalkeepers Henderson, Pickford, Pope.
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Midfielders Henderson, Mount, Phillips, Rice, Ward-Prowse, Winks.
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