UAE satellite operator Yahsat has had a good start to the year with a revenue growth of 9.4% and a 26.4% increase in profit reported for Q1 – a three-month period that ended 31 March 2022.
Speaking about Yahsat’s growing success, Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented: “Yahsat has had an excellent start to 2022 with significant year-on-year growth in revenue, adjusted EBITDA and Net Income. With the recent award of a 5-year managed services mandate from the UAE Government, reinforcing our position as its preferred satellite solutions partner, we strengthened our foundations for long term sustainable growth, and now show contracted future revenue of USD 2.2bn, 5.4 times our annual revenue.
“With almost 90% of remaining projected revenue for the current year already secured, we remain very confident in our outlook for Yahsat and reiterate our guidance for FY2022.”
Following its resounding success in Q4 21, Yahsat has continued building on its strong momentum in 2022 with Q1 revenue of USD 98.7m reflecting an increase of 9.4% year-on-year. A release stated that all business segments performed well with a particularly exceptional performance in both Managed Solutions and Mobility Solutions, which increased by 26.0% and 45.4% respectively.
As of 31 March 2022, the Group’s contracted future revenue stood at $2.2bn, equivalent to around 5.4 times annualised revenue. Future revenue increased by 8.6% since the start of the financial year and by 47.3% since the beginning of 2021, underpinned by the recent five-year $247.5m managed services mandate awarded by the UAE Government.
Adjusted EBITDA of $58.1m increased by 6.8% year-on-year, generating a strong margin of 58.9%. Net income (profit attributable to shareholders) of $20.1m increased by 26.4% year-on-year, resulting in a higher net income margin of 20.4% versus 17.6% in the prior period.
The Group’s balance sheet remained strong. On 31 March 2022, the Group’s net debt stood at $104m with a leverage ratio (net debt to Adjusted EBITDA) of 0.4x.
Together with Discretionary Free Cash Flow for the period of 90.7m and a cash conversion ratio of 97.6%, the Group claimed it is well positioned to meet its future dividend, growth and capital expenditure commitments.