The normalised adjusted EBITDA margin improved from 60.4% in H1 2020 to 60.9% in H1 2021.
Al Yah Satellite Communications has recorded improvements across its business lines, in the UAE and internationally, resulting in quarter-on-quarter revenue growth of 10.9% to AED 367.1m ($100m) in Q2 2021. This contributed to H1 2021 revenues of AED 698.4m ($190.2m), which were down slightly by 3.9% compared to H1 2020 due to heightened Covid-19 challenges in global markets during the Q1 of 2021, the company announced in its financial results for the period ended June 30, 2021.
In its first announcement after the completion of its initial public offering on July 14, 2021, Yahsat reported robust financial performance for the first half of 2021, showing strong results across all operating segments.
Net income (profit attributable to the shareholders) for the first half of 2021 was in line with the prior year. On a normalised basis, after adjusting for one-off non-recurring items, the group recorded a normalised net income of AED 136.3m ($37.1m) compared to AED 106.6m ($29m) for the same period last year, representing an increase of AED 29.7m ($8.1m) or 28%. Moreover, and in comparison to the previous quarter of this year, the Q2 2021 normalised net income increased by AED 19.5m ($5.3m) or 33%.
Although adjusted EBITDA for the first half of 2021 of AED 425.6m ($115.9m) was AED 18.9m ($5.1m) or 4.2% lower than the prior year, the normalised adjusted EBITDA margin improved from 60.4% in H1 2020 to 60.9% in H1 2021. Operating Free Cash Flow for the first half of the year was AED 408m ($111m).
In June 2021, Yahsat entered into a 15-year T4-Next Generation Satellite Capacity Services agreement with a government customer in the UAE, adding more than AED 2.5bn ($700m) to its committed contract backlog increasing it to over AED 7.7bn ($2.1bn). The agreement strengthens Yahsats highly attractive financial profile, securing future cash flows and underpinning the groups stated progressive dividend policy. Moreover, Yahsat maintained a high cash conversion ratio at over 95% for the period ended June 30, 2021, driven by CAPEX efficiency and a well-capitalised balance sheet.
Revenue for H1 2021 at AED 698.4m ($190.2m) is marginally lower (3.9%) compared to the prior year, but on a quarterly basis, revenues grew strongly in Q2 2021 across the business, illustrating the groups resilience and growth potential despite challenging Covid-19 business conditions. Q2 2021 revenues increased by AED 35.8m ($9.8m) compared to Q1 2021, with the majority of the year-on-year revenue variance relating to Q1 2021 performance.
Revenues from the largest segment, infrastructure, remained solid on a quarterly basis, with an increase of AED 4.8m ($1.3m) year-on-year to AED 440.3m ($119.9m).
Managed Solutions has started to recover in Q2 2021, recording a AED 18.0m ($4.9m) revenue increase compared to Q1 2021. H1 2021 revenues of AED 106.9m ($29.1m) were AED 12.5m ($3.4m) below H1 2020 largely reflecting temporary Covid-19 related delays to certain projects.
Despite the challenging trading conditions in its primary markets, the Data Solutions business remains underpinned by strong fundamentals. During H1 2021, YahClick grew its subscriber base by 8%, with further subscriber and business growth expected in the near term after securing three significant new enterprise and telecom customers in Africa during the first half of the year, and continuing with strong momentum as further expansion in Africa is planned for in H2 of this year.
Mobility Solutions has also performed strongly in Q2 2021, achieving revenue growth of AED 14.7m ($4m), 31.5% higher than Q1 2021, as Covid-19 travel restrictions were gradually lifted leading to significant improvement in key segments including maritime in high growth markets such as Asia.
Ali Al Hashemi, Yahsat Chief Executive Officer said: The solid start we had at the beginning of 2021 has gained further momentum, as demonstrated by our Q2 results. Our strong performance is a resounding testament to the resilience of our businesses, reaching 80% of the global population across five continents with critical connectivity solutions. In parallel, we have balanced service quality and effectiveness with operational excellence and stringent financial management. As a leading Abu Dhabi based satellite-communication pioneer, we continue to leverage our competitive fixed and mobile satellite connectivity solutions to accelerate our growth plans globally, expanding our national and international operations and partnerships to reach all corners of the world. Moreover, we are reinforcing these plans by pursuing multiple significant opportunities to create further value for our shareholders.
