Yahsat has proposed a 2% increase in dividend, as revenues rose to more than $430m.
Yahsat delivered growth in revenue and Adjusted EBITDA, which increased 6% and 7%, respectively year-on-year in 2022.
The groups positive performance was primarily driven by the Managed Solutions segment which delivered exceptional results in each quarter of the year and saw revenue increase significantly by 41% year-on-year to AED 33m ($91m). Infrastructure, the groups largest business segment, continued to deliver stable and predictable returns, reporting AED 872m ($238m) in revenue for the period, 1% higher than the prior year.
Total revenue for the full year of 2022 stood at AED 1.6bn ($433m), up 6% year-on-year, driven by the growth of 41% in Managed Solutions and stable performance across the Infrastructure and Mobility Solutions businesses.
Adjusted EBITDA of AED 946m ($258m), up 7% year-on-year, delivering a superior margin of 60%. Normalised net income of AED 390m ($106m) up 31% year-on-year, generating a strong margin of 25%.
Contracted future revenue of AED 7.3bn ($2.0bn), equivalent to 4.6 times the annual revenue for the year 2022.
Robust balance sheet with negative net debt, strong cash position and long-term visibility of future cash flows, continues to support Yahsats investment in organic growth as well as opportunistic acquisitions, without impacting its progressive dividend policy.
The group proposed a full-year dividend of AED 16.12 fils (4.39 cents) per share or AED 393m ($107m), 2% higher than the prior year, of which 50% was paid as an interim dividend in October 2022 and the remaining amount is expected to be paid as a final dividend in May 2023 subject to shareholder approval at the upcoming annual general meeting.
Musabbeh Al Kaabi, Chairman of Yahsat, commented: In a year of continued transformational change for the satellite industry and against a backdrop of global economic headwinds and tighter financial conditions, the Group continues to deliver impressive top-line revenue growth, a superior margin and healthy cash flows, positioning it to sustain and grow its dividend and invest in organic and inorganic growth opportunities.
The true test of a company’s performance, however, is its ability to deliver on its promises, and I’m pleased to see Yahsats management team firmly meet or exceed the financial targets set out in our first full year as a publicly traded company following the successful IPO in July 2021. This reliable and steady progress bodes well for creating further shareholder value as we work on executing Yahsats growth strategy.
In turn, the Board is also pleased to recommend a total dividend for the year of 16.12 fils, which, based on Yahsats current share price, implies a dividend yield of more than 6%, one of the highest yields amongst UAE-listed equities. We expect to continue growing Yahsats dividends by at least 2% per year underscoring the Boards confidence in Yahsats future growth potential and long-term visibility of cash flows.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, added: Yahsat delivered strong growth in 2022, reinforcing and expanding its role as the preferred partner of the UAE Government for satellite solutions. We now provide complete end-to-end managed solutions to the UAE government under a new, expanded mandate that includes technology management services. The launch of the Thuraya-4 NGS satellite in 2024 followed by two potential new satellites, Al Yah 4 and Al Yah 5, demonstrates our commitment to sustaining our core government business, presenting unique growth opportunities for the Group that are expected to further secure our long-term financial outlook beyond 2026.
In our commercial businesses, we are refocusing on areas of higher growth and profitability. This includes targeting various industry verticals, such as oil and gas, health and education, and maritime, and offering both mobile and fixed satellite services to meet their satellite connectivity needs. New products under development for the Thuraya-4 NGS satellite will also be offered to commercial customers, underpinning organic growth, whilst opportunistic acquisitions will allow us to further expand our product portfolio and customer base.
Looking ahead, we remain confident in the Groups underlying health and resilience, which is supported by a robust balance sheet and substantial contracted future revenues of approximately AED 7.3 billion [USD 2 billion]. This financial strength will help drive our future ambitions as we pursue a range of promising growth opportunities across IoT, government, maritime and enterprise data solutions, playing to our many strengths and driving sustainable long-term growth.
