Abu Dhabi-based satellite operator Al Yah Satellite, which trades as Yahsat, has reported an attractive set of financial results for its H1 trading period (to June 30th).
The company has just wrapped its IPO (on July 14th).
YahSat says that its Net income for the first half of 2021 was in line with the prior year. On a normalised basis, after adjusting for one-off non-recurring items, the group recorded a normalised net income of AED 136.3 million ($37.1m/€31.6m) compared to AED 106.6 million ($29m) for the same period last year, representing an increase of AED 29.7 million ($8.1m) or 28 percent. Moreover, and in comparison to the previous quarter of this year, the Q2/2021 normalised net income increased by AED 19.5 million ($5.3m) or 33 percent.
In June 2021, Yahsat entered into a 15-year T4-Next Generation Satellite Capacity Services agreement with a government customer in the UAE, adding more than AED 2.5 billion ($700m) to its committed contract backlog increasing it to over AED 7.7 billion ($2.1bn).
Yahsat says the agreement strengthens Yahsat’s highly attractive financial profile, securing future cash flows and underpinning the group’s stated progressive dividend policy. Moreover, Yahsat maintained a high cash conversion ratio at over 95 percent for the period ended June 30th, 2021, driven by CAPEX efficiency and a well-capitalised balance sheet.
Revenue for H1/2021 at AED 698.4 million ($190.2m) is marginally lower (3.9 per cent) compared to the prior year, but on a quarterly basis, revenues grew strongly in Q2/2021 across the business, illustrating the group’s resilience and growth potential despite challenging Covid-19 business conditions. Q2/2021 revenues increased by AED 35.8 million ($9.8m) compared to Q1/2021, with the majority of the year-on-year revenue variance relating to Q1/2021 performance.
Ali Al Hashemi, Yahsat CEO said: “The solid start we had at the beginning of 2021 has gained further momentum, as demonstrated by our Q2 results. Our strong performance is a resounding testament to the resilience of our businesses, reaching 80 per cent of the global population across five continents with critical connectivity solutions. In parallel, we have balanced service quality and effectiveness with operational excellence and stringent financial management. As a leading Abu Dhabi based satellite-communication pioneer, we continue to leverage our competitive fixed and mobile satellite connectivity solutions to accelerate our growth plans globally, expanding our national and international operations and partnerships to reach all corners of the world. Moreover, we are reinforcing these plans by pursuing multiple significant opportunities to create further value for our shareholders.”