Yahsat expects revenue growth as it continues to secure deals

Satellite operator has contracted future revenue of more than $2bn, boosted by 'significant' new deals in the third quarter of this year

UAE satellite operator Yahsat is bullish about its revenue growth prospects. Ravindranath K / The National

Al Yah Satellite Communications, better known as Yahsat, is well positioned for further revenue growth, underpinned by commercial deals secured in the third quarter of this year, the company's chief executive said.

Revenue for the nine-month period to the end of September stood at $284 million, which was broadly in line with the same period in 2020, the company said in a statement on Sunday to the Abu Dhabi Securities Exchange, where its shares are traded.

“We continue to see a strong performance in our revenue, coupled with high levels of profitability and cash flow,” Ali Al Hashemi said.

“We are laying the foundations for future growth, by signing new deals across our commercial and government businesses, which add to our contracted future revenue and underpin our commitment to a progressive dividend.”

The company, a unit of Mubadala Investment Company that raised about $731m through its public offering in July, has contracted future revenue of more than Dh7.3bn, boosted by “significant” deals secured in the third quarter of this year.

The potential expansion of Yahsat’s existing satellite fleet presents it with additional growth opportunities across the business, which bodes well for its long-term outlook, Mr Al Hashemi said.

The company, which is among the top-10 satellite operators in the world by revenue, expects income from its global data services to significantly rise once it adds new technology and launches another satellite into orbit in 2023, Mr Al Hashemi, told The National in September.

“We remain on track to achieve all our strategic objectives, financially and operationally, supported by the rapid post-pandemic recovery of our business segments globally,” he said on Sunday.

“We will continue forging partnerships with the world’s most innovative companies to enhance our competitiveness and continue to create value for our customers, shareholders and the UAE.”

Yahsat said it maintained an adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) margin of more than 60 per cent during the first nine months of the year, with adjusted ebitda reaching $171m at the end of the reporting period.

Founded in 2007, the satellite operator 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 cover more than 80 per cent of the world’s population.