Yahsat Announces Record-Breaking Financial Performance For 2023, Sets Stage For Future

Al Yah Satellite Communications Company PJSC (Yahsat) has reported a significant financial growth for the year ending 31 December 2023, marking a milestone in its operational achievements. The company witnessed a 6 percent increase in revenue, reaching a record AED 1.7 billion (US$457 million). Furthermore, EBITDA saw a 3 percent rise to AED 977 million ($266 million), with net income surging by 68 percent to AED 405 million ($110 million). Adjustments for one-off items revealed an even more robust financial health, with EBITDA and net income on a normalised basis growing by 5 percent and 9 percent respectively.

This remarkable performance was supported by revenue growth across all operating segments for the first time since Yahsat's IPO in July 2021. The Infrastructure segment, catering to the UAE Government, reported a 1 percent increase in revenue. The Mobility Solutions segment, leveraging L-band spectrum for mobile satellite services, achieved its highest revenues since acquiring Thuraya in August 2018, with a 23 percent growth. Managed Solutions and Data Solutions segments also reported revenue increases of 2 percent and 6 percent respectively.

Musabbeh Al Kaabi, Chairman of Yahsat, highlighted the company's significant strides in 2023 and outlined the future roadmap. The upcoming year is set to witness the launch of new satellites, Al Yah 4 and Al Yah 5, alongside Thuraya 4, marking a new phase in Yahsat's journey. These advancements are expected to enhance the company's fleet capabilities substantially.

Additionally, the proposed merger between Yahsat and Bayanat aims to create Space42, an AI-powered space technology entity with global reach. This merger is anticipated to position Space42 among the world's most valuable publicly listed space companies by market capitalisation. However, this merger is pending shareholder and regulatory approvals and is expected to conclude in the second half of 2024.

Ali Al Hashemi, Group CEO of Yahsat, expressed pride in the company's historic financial performance and operational excellence in 2023. The renewal of Yahsat's fleet with three new data-centric satellites is poised to unlock significant growth opportunities across various segments. These include serving the UAE Government's satellite solution needs, commercialising narrowband spectrum for Direct-to-Device (D2D) communications, and developing IoT technologies for remote asset tracking.

The achievements of Yahsat in 2023 set a solid foundation for future growth and innovation. With strategic expansions and mergers on the horizon, Yahsat is well-positioned to continue its trajectory of success in the evolving space and satellite communications industry.

With inputs from WAM