Temporary working capital

Yahsat reports nine-month profit of $ 43.3 million

Yahsat claims to be well positioned for future growth with future contractual revenues of more than $ 2 billion from important new trade and government agreements reached in the third quarter of 2021.

Yahsat reported a net profit of AED 159 million ($ 43.3 million) for the first nine months of 2021 (9M 2021). Revenue continued to gain ground with nine-month revenue of AED 1 billion ($ 284.3 million), which is broadly in line with the previous year, demonstrating a solid and sustained performance since the first quarter of 2021.

A strong pipeline across all lines of business is expected to support revenue growth, with a number of new commercial and government contracts signed and other significant deals already signed as of the date of this announcement.

The company maintained an Adjusted EBITDA margin above 60%, with nine-month Adjusted EBITDA of AED 628.3 million ($ 171.1 million). Normalized Adjusted EBITDA of AED643.6 million ($ 175.3 million) exceeded 2.5% in the previous year, generating a margin of 61.6%, above the margin of 58.3 % of previous year, reflecting continued cost and working capital efficiency.

Net profit (profit attributable to shareholders) for the nine months was AED159 million ($ 43.3 million). After adjusting for one-off items, normalized net income of AED200.1 million ($ 54.5 million) was above the previous year by AED 61.4 million ($ 16.7 million) ( or 44.3%). The normalized net income margin of 19.2% for the nine months was well above the corresponding margin of 12.9% the previous year.

The 9M 2021 results were supported by a resilient performance in Q3, with broadly stable revenues (around 1% lower than in Q3 2020) and a noticeable increase in profitability, with normalized adjusted EBITDA up by 28, AED 9 million ($ 7.9 million) (15.3%) and normalized EBITDA Net income up AED 31.7 million ($ 8.6 million) (99.2%).

Yahsat maintained a high cash conversion ratio of approximately 97% for the period ended September 30, 2021, thanks to low capital expenditures related to maintenance.

The T4-NGS program, which started in 2020, remains on track with several key contracts now concluded. In June 2021, Yahsat entered into a 15-year T4-NGS capacity services agreement, adding more than AED 2,570 million (over $ 700 million) to future contract revenues. In September 2021, Yahsat selected SpaceX Falcon 9 for the launch of the T4-NGS satellite in 2023 and awarded Cobham SATCOM the contract to provide a complete mobile broadband system, including ground infrastructure.

The success of the AED 2,572.6 million ($ 700.5 million) refinancing program, which ended in June 2021, strengthened the group’s already strong cash position and supported a net debt ratio / Healthy EBITDA of 0.5x at September 30, 2021.

In October 2021, Yahsat’s board of directors approved management’s recommendation to update the group’s current dividend policy, allowing it to distribute dividends on a semi-annual basis going forward. The updated policy is subject to shareholder approval at the next AGM in 2022. This reflects the board’s confidence in the financial strength of the company, a positive outlook on cash flow and capacity. of Yahsat to finance future investments.

A final dividend of AED 192.8 million ($ 52.5 million) for fiscal 2021 is expected to be paid to all shareholders in April 2022, bringing the total dividend for the year 2021 to $ 385.6 million. ‘AED ($ 105 million).

The dividend is expected to grow by at least 2% per year, i.e. in 2022 by 15.96%, in 2023 by 16.28% and in 2024 by 16.61%.

Commenting on the results, Ali Al Hashemi, Managing Director of Yahsat, said: “We continue to see strong revenue performance coupled with high levels of profitability and cash flow. We are laying the groundwork for future growth, signing new agreements in our business and government activities, which add to our future earnings and reinforce our commitment to a progressive dividend. Our recent appointment by the government of the United Arab Emirates to assess the expansion of our existing fleet with two potential new satellites provides Yahsat with significant additional growth opportunities across the company, further enhancing our long-term outlook. . “

Al Hashemi added, “We remain on track to achieve all of our strategic, financial and operational objectives, supported by the rapid post-pandemic recovery of our business segments globally. We will continue to forge partnerships with the world’s most innovative companies to improve our competitiveness and continue to create value for our customers, shareholders and the United Arab Emirates. “

Third quarter revenue of AED 345.6 million ($ 94.1 million) remained strong and broadly in line with the prior year. On an annual basis, revenues continued to recover with total revenues of AED 1.0 billion ($ 284.3 million) now just 3.1% lower than the previous year, down from -7 , 3% in the first quarter of 2021.

Revenue for the largest segment, Infrastructure, remained strong with a year-over-year increase of AED 5.0 ​​million ($ 1.4 million) (or 0.8%) to 658.2 million ‘AED ($ 179.2 million).

Managed Solutions continued to grow with revenue of AED 47.3 million (AED 12.9 million) in the third quarter of 2021, surpassing the previous year by AED 5.2 million (1, 4 million AED) (or 12.4%). During the quarter, it continued to capture new business and increase its future contracted income by more than AED40.4 million ($ 11 million). Year-to-date revenue of AED 154.0 million ($ 41.9 million) is now only 4.6% lower than the previous year, down from -23.4% in the first quarter of 2021. The year-over-year shortfall reflects temporary delays related to Covid-19. to certain projects even if, for certain programs, it appears clearly that the situation is improving.

Mobility Solutions also recorded a strong performance with a turnover of AED 60.7 million in the third quarter[(165millionsdedollars)enligneavecledeuxièmetrimestreLechiffred’affairestotalde1685millionsd’AED(459millionsdedollars)pourlesneufmoisestinférieurde94àceluidel’annéeprécédentenettementmieuxquelemanqueàgagnerenglissementannuelde-%183%aupremiertrimestre2021Lareprisedevraitsepoursuivreauquatrièmetrimestreetau-delàsoutenuparlasignaturerécented’unimportantcontratdedistributiondetroisansavecunfournisseurdeservicesmondiald’unevaleurdeplusde316millionsd’AED(86millionsdedollars)etl’expansioncontinuedel’activitémaritimeenparticuliersurlesmarchésàfortecroissanceenAsiecommeleVietnam[(5m)inlinewithQ2ThetotalrevenuesofAED1685m(9m)fortheninemonthsare94%lowerthanprioryearsignificantlybetterthantheyear-on-yearshortfallof-183%atQ12021TherecoveryisexpectedtocontinueintoQ4andbeyondunderpinnedbytherecentsigningofasignificantthree-yeardistributioncontractwithaglobalserviceproviderworthmorethanAED316m(m)andcontinuedexpansionoftheMaritimebusinessinparticularacrosshighgrowthmarketsinAsiasuchasVietnam[(165millionsdedollars)enligneavecledeuxièmetrimestreLechiffred’affairestotalde1685millionsd’AED(459millionsdedollars)pourlesneufmoisestinférieurde94%àceluidel’annéeprécédentenettementmieuxquelemanqueàgagnerenglissementannuelde-183%aupremiertrimestre2021Lareprisedevraitsepoursuivreauquatrièmetrimestreetau-delàsoutenuparlasignaturerécented’unimportantcontratdedistributiondetroisansavecunfournisseurdeservicesmondiald’unevaleurdeplusde316millionsd’AED(86millionsdedollars)etl’expansioncontinuedel’activitémaritimeenparticuliersurlesmarchésàfortecroissanceenAsiecommeleVietnam[(5m)inlinewithQ2ThetotalrevenuesofAED1685m(9m)fortheninemonthsare94%lowerthanprioryearsignificantlybetterthantheyear-on-yearshortfallof-183%atQ12021TherecoveryisexpectedtocontinueintoQ4andbeyondunderpinnedbytherecentsigningofasignificantthree-yeardistributioncontractwithaglobalserviceproviderworthmorethanAED316m(m)andcontinuedexpansionoftheMaritimebusinessinparticularacrosshighgrowthmarketsinAsiasuchasVietnam

Data Solutions reported nine-month revenue of AED63.4 million ($ 17.3 million), AED13.0 million ($ 3.5 million) lower than for the year previous, reflecting the July 2021 end of a multi-year opportunistic capacity agreement with Eutelsat, complementary to the core data solutions strategy. At the same time, the Consumer Broadband business continued to accelerate with the number of subscribers up 16% in the nine months and corresponding revenues up 24%, supported by a rapid expansion of the Direct-to model. -Market (‘DTM’) in South Africa. This growth is expected to continue as the number of subscribers continues to increase in South Africa and the DTM model is rolled out in other major markets (including Nigeria) in the fourth quarter. The wholesale business and carrier deal pipeline continues to grow with 5 new deals signed in the third quarter, adding more than AED40.4 million ($ 11 million) to future contracted revenues. As the Consumer Broadband and Enterprise and Carrier Wholesale businesses gain momentum, Data Solutions is poised to experience growth in 2022.


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