Yahsat’s satellite services experience 6% growth in the UAE.
Abu Dhabi-based satellite operator, Yahsat, announced its preliminary results for 2022, reporting a six per cent YoY increase in revenue to Dh1.6bn ($433m). The company’s managed solutions segment, which provides satellite communication services to the UAE government, drove the growth, contributing to 85% of the company’s revenue, while the operating profit surged 28% to Dh422m on an annual basis. However, profit fell by six per cent YoY due to an impairment charge related to Yahsat’s equity-accounted joint-venture in HPE Brazil, partially offset by the group’s improved underlying performance. The company is expected to release its audited consolidated financial statements on 28 February 2023.
Yahsat, founded in 2007, provides multi-mission satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia, and Australasia. The company is planning to expand its operations by launching the Thuraya 4 Next Generation Satellite (T4-NGS) in 2024, which is expected to commence commercial services in H1 2025.
According to the company’s chief financial officer, Andrew Cole, the results are in line with their expectations of revenue growth between 3 and 8 per cent for the full year. Yahsat’s growth was expected given its focus on managed solutions, which has helped to expand its reach beyond its core telecoms market. The segment is growing as the UAE government is expanding its investments in space-based services to support its digital transformation strategy.
Despite the challenges presented by the Covid-19 pandemic, Yahsat has been able to maintain its growth momentum, driven by its ability to deliver critical communications such as broadband connectivity, broadcasting, and mobility solutions. Furthermore, Yahsat’s fleet of five satellites extends its reach to more than 80 per cent of the world’s population. Yahsat’s strong performance in the managed solutions segment demonstrates the importance of satellite communication services in today’s world, where demand for connectivity and digitalisation continues to rise.
Although Yahsat’s profit was impacted by the impairment charge related to its investment in HPE Brazil, the company’s revenue growth indicates its ability to navigate the challenges presented by the global pandemic and continue its growth trajectory. With the launch of the Thuraya 4 Next Generation Satellite in 2024, the company is poised for further expansion in the satellite communication services market. The company’s preliminary results demonstrate that it is well-positioned to capture the opportunities presented by the rapidly growing demand for digital connectivity and space-based services.
In conclusion, Yahsat’s preliminary results for 2022 highlight the company’s continued growth in revenue, driven by the managed solutions segment. The company’s focus on providing satellite communication services to the UAE government has enabled it to expand its reach beyond its core telecoms market. Despite the impact of the pandemic, Yahsat’s strong performance demonstrates the importance of satellite communication services in today’s world, where demand for connectivity and Digitalisation continues to rise. With the launch of the Thuraya 4 Next Generation Satellite in 2024, the company is well-positioned to capture the opportunities presented by the rapidly growing demand for digital connectivity and space-based services.
