Yahsat Reports Financial and Operational Milestones in 2023
According to our source, the renowned satellite operator, Yahsat recently announced remarkable financial growth and operational achievements for the year 2023. Included in these accomplishments was a 5 percent jump in EBITDA, taking it up to AED996 million ($271 million), and a record-setting net income amounting to AED424 million ($116 million).
One-Off Costs and Forthcoming Merger
Yahsat’s report also included details of one-off costs incurred during the same period. As disclosed by Yahsat, these one-off expenditures comprise redundancy and advisory fees associated with their forthcoming merger with Bayanat. The merger is projected to form a cutting-edge, AI-driven space technology entity that will be named Space42. However, it should be noted that the merger’s fruition relies on the approval of shareholders and regulatory authorities.
Bullish Financial Targets for 2024
It has been indicated by Yahsat that they predict encouraging financial targets for the year 2024. Revenue forecasts range between AED1.6-1.7 billion ($440-460 million). Meanwhile, discretionary free cash flow is set to be somewhere between AED 441-514 million ($120-140 million). The news of expanding its 2023 dividend by 2 percent was also part of the company’s financial plan.
Expansion Coming Through
In terms of expansion, Yahsat has earmarked significant developments. The acquisition of two new satellites, Al Yah 4 and Al Yah 5, along with the Thuraya 4’s launch, is considered key elements of Yahsat’s growth strategy. These steps will expand and enhance Yahsat’s existing fleet and its capabilities.
The Expected Merger with Bayanat
- Yahsat’s pending merger with Bayanat can be seen as a strategic move to establish itself as one of the highest valued publicly listed space companies across the globe. The merger promises global growth and synergies.
- However, it’s crucial to note that both companies will retain their independence and continue their operations separately until all necessary approvals for the merger are obtained.
Revenue Growth Across All Segments
Another significant achieveement pointed out in our source’s report is Yahsat’s revenue growth across all operating segments. This is the first occurence of such growth since Yahsat’s Initial Public Offering in July 2021. Particularly noteworthy were the increases reported in the Mobility Solutions and Data Solutions segments.
