Underpinning this impressive performance was revenue growth across all operating segments of the group for the first time since its initial public offering in July 2021.
With contracted future revenues reaching AED25.1bn ($6.8bn) or 15 times its full-year revenues, Yahsat has seen its 2023 net income soar 68% to AED405m ($110m).
Yahsat revenue grew 6% for the year versus the prior year to a record AED 1.7bn ($457m). EBITDA grew 3% to AED 977m ($266m) and net income grew 68% to AED 405m ($110m). On a normalised basis, adjusting for material, one-off items to allow like-for-like comparison, EBITDA grew 5% to reach a record of AED 996m ($271m) and net income grew 9% to a record AED 424m ($116m).
Underpinning this impressive performance was revenue growth across all operating segments of the group for the first time since its initial public offering in July 2021. Infrastructure, the groups largest segment providing communications capacity to the UAE Government by means of an index-linked long-term contract, continued to grow its year-on-year revenues by 1%. The Mobility Solutions segment, which provides mobile satellite services using L-band spectrum, recorded its highest-ever revenues since Yahsats acquisition of Thuraya in August 2018. Revenue grew 23% versus the prior year, driven by a surge in equipment sales and higher service revenues. Managed Solutions, the Groups third largest segment by revenue providing complete value-added satellite communications solutions primarily to the UAE Government and related entities, reported 2% revenue growth, building on an exceptionally strong prior year performance. Data Solutions, offering satellite-based broadband data solutions, grew revenues by 6%.
Musabbeh Al Kaabi, Chairman of Yahsat, commented: The Groups impressive achievements in 2023 have set the stage for further important developments this upcoming year. Yahsat is entering a new phase of its journey following the award of its largest-ever government mandate, covering the procurement of two new satellites, Al Yah 4 and Al Yah 5, and the upcoming launch of Thuraya 4 in the second half of 2024. These new satellites represent a substantial upgrade to the Groups current fleet and will provide completely new capabilities and applications to support future growth.
In addition, the proposed merger between Yahsat and Bayanat will create an AI-powered space technology champion with global reach. To be rebranded Space42 upon completion of the merger, the merged entity will provide vertically integrated, AI-powered geospatial and mobility solutions, satellite communications, and business intelligence. At the time of writing, the merger is subject to shareholder and regulatory approvals, and is expected to close in the second half of 2024. This is an exciting opportunity to create one of the most valuable publicly listed space companies in the world by market capitalisation, with additional potential for significant global growth and synergies. Until the merger is approved and the necessary regulatory approvals obtained, the two companies will continue to be run independently and administer their own dividend policies.
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, said: 2023 was a year of major achievement for Yahsat. Not only did it record a historic financial performance whilst continuing to meet the highest standards of operational excellence, but it was also awarded its largest ever mandate by the UAE Government. The Board also proposed a merger with Bayanat.
Yahsat recorded its strongest-ever financial results, surpassing management guidance and analyst consensus figures across key financial metrics including revenue, EBITDA, net income and cash flow. The renewal of our fleet with three new, advanced, data-centric satellites, together with our valuable L-band spectrum rights and best-in-class ground infrastructure, position us well for significant growth opportunities across a range of different segments. These include serving the UAE Governments requirements for all satellite-enabled solutions, further commercialising our narrowband spectrum to become a critical player in Direct-to-Device (D2D) and developing IoT technologies that allow remote asset tracking and monitoring.
The future is promising and we are excited to play our role in shaping it.
