Yahsat First Half Revenues Up by 8.1% to record levels, with
Net Income Increasing by 50.7%
Abu Dhabi, United Arab Emirates, 9 August 2022: Al Yah Satellite Communications Company PJSC
(“Yahsat” or “the Group”) listed on the Abu Dhabi Securities Exchange (“ADX”) under
(SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE’s flagship satellite solutions provider, today
announced its financial results for the six-month period ended 30 June 2022 (“1H22”).
1H22 Highlights
Revenue of AED 755 million [USD 206 Strong financial position and high visibility
million], up 8.1% year-on-year, on future cash flows underpin ability to invest
underpinned by double-digit growth in in growth and sustain attractive dividend
Managed Solutions and Mobility Solutions policy
Adjusted EBITDA of AED 448 million On track to grow FY2022 dividend by at
[USD 122 million], up 5.3% year-on-year, least 2% to 16.12 fils [USD 4.39 cents] per
delivering a robust margin of 59.3% share or AED 393 million [USD 107 million],
split into two equal installments payable
Net Income of AED 167 million [USD 45
around October 2022 and May 2023
million], up 50.7% year-on-year, driving a
strong net margin of 22.1% Lower end of FY2022 revenue guidance
increased to AED 1,542 million [USD 420
Contracted future revenue of more than
million] from AED 1,524 million [USD 415
AED 7.7 billion [USD 2.1 billion], equivalent
million]; all other guidance remain
to 5.2 times FY2021 annual revenue
unchanged
Musabbeh Al Kaabi, Chairman of Yahsat, commented:
“Against a backdrop of challenging global economic headwinds, we are delighted to record our highest ever
first-half revenue whilst significantly growing Adjusted EBITDA and net income. This reflects the strength
of our business underpinned by strong contracted future revenue and positive momentum across operating
segments. In light of our strong year-to-date performance, the Board of Directors’ confidence in future cash
flow generation, ability to grow the business and financial strength of the Company, we are reiterating our
commitment to deliver attractive shareholder returns.”
Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented:
“Yahsat has delivered exceptional results, recording its highest-ever first half revenue and demonstrating
our performance-driven culture to deploy innovative capabilities and grow the business. Our contracted
future revenue exceeds AED 7.7 billion, equivalent to 5.2 times FY2021 annual revenue. Looking ahead,
we remain on track to bring into commercial service our Next Generation Satellite, Thuraya 4-NGS, in the
second half of 2024 whilst two new satellites, Al Yah 4 and Al Yah 5, are under consideration for launch in
2026. We remain very confident in both our short-term and long-term outlook, and have accordingly
increased the lower end of our revenue guidance for FY2022, whilst reiterating our commitment to pay a
progressive dividend.
We remain committed to pursuing and launching new growth opportunities across the business and we are
confident that Yahsat’s robust balance sheet, business resilience and track record in delivering exceptional
results will enable us to capture significant value to drive long-term growth.”
Page 1 of 8Strong first-half results
Yahsat’s growth momentum continued in 2Q22 with revenue of AED 392 million [USD 107 million], an
increase of 6.9% year-on-year. This resulted in 1H22 revenue growth of 8.1% year-on-year to AED 755
million [USD 206 million]. Both Managed Solutions and Mobility Solutions performed exceptionally well with
1H22 revenues increasing by 35.1% and 24.1% respectively.
2Q22 Adjusted EBITDA of AED 235 million [USD 64 million] increased by 3.9% year-on-year, generating a
healthy margin of 59.8%, while net income (profit attributable to the shareholders) of AED 93 million [USD
25 million] increased by 77.9% year-on-year. On a year-to-date basis, the Group recorded 1H22 Adjusted
EBITDA growth of 5.3% and an increase in net income of 50.7%, resulting in a solid net income margin of
22.1%.
As at 30 June 2022, the Group’s contracted future revenue remained strong at more than AED 7.7 billion
[USD 2.1 billion], equivalent to around 5.2 times FY2021 annual revenue representing an increase of 4.1%
since the start of the financial year, underpinned by the 5-year AED 909 million [USD 247 million] managed
services mandate awarded by the UAE Government in February 2022.
Attractive dividend outlook
Yahsat reiterates its commitment to grow its dividend by at least 2% per year, reflecting the Board of
Directors’ confidence in the cash flow generation and overall financial strength of the business. For financial
year 2022, the total expected dividend is a minimum of 16.12 fils per share [US Cents 4.39], split into two
equal instalments payable around October 2022 and May 2023 respectively. This represents a total
dividend payment of AED 393 million [USD 107 million]. The Company’s dividend policy is well supported
by its high cash conversion (93.1% in 1H22), robust balance sheet (0.9x Net Debt/EBITDA as at 30 June
2022) and a strong discretionary free cash flow1 (expected to be approximately two times FY2022 dividend
payment).
Increasing minimum revenue guidance
In view of the strong 1H22 performance and considering that approximately 90% of the remaining projected
revenue for FY2022 is already secured (based on the low end of its revenue guidance), Yahsat has decided
to narrow the range of its FY2022 guidance provided on 1 March 2022. The Company now raises its
projected 2022 revenues to at least AED 1,542 million [USD 420 million] with the upper end of the range
unchanged at AED 1,616 million [USD 440 million]. All other guidance remain unchanged.
Senior management appointment
On 1 July 2022 (a post-period event), Yahsat announced the appointment of Mr. Sulaiman Al Ali as Chief
Commercial Officer (“CCO”). Mr. Al Ali has assumed the role having been with Yahsat for eight years,
previously serving as a Director of Yahsat Government Solutions and later as CEO of Thuraya, where he
has been instrumental in driving operational excellence and delivering new and innovative solutions for
customers, establishing a platform for strong future growth. In his new role, Mr. Al Ali will lead both YahClick,
Yahsat’s Data Solutions arm, and Thuraya, with a mandate to drive synergies and growth across these
commercial businesses, creating value for customers and partners. He takes over from Mr. Farhad Khan,
who spent six years in the role and was a key player in the expansion of the YahClick business in new and
existing markets.
1 Refer to Alternative Performance Measures in Appendix for definition
Page 2 of 8MANAGEMENT DISCUSSION & ANALYSIS
Financial Overview
AED millions 2Q22 2Q21 Change % 1H22 1H21 Change %
Revenue 392 367 6.9% 755 698 8.1%
Adjusted EBITDA 235 226 3.9% 448 426 5.3%
Adjusted EBITDA Margin % 59.8% 61.5% 59.3% 60.9%
Net Income (Profit attributable to the
93 52 77.9% 167 111 50.7%
shareholders)
Net Income Margin % 23.6% 14.2% 22.1% 15.8%
Normalized Net Income
93 78 19.2% 167 136 22.3%
(Profit attributable to the shareholders)
Discretionary Free Cash Flow (109) (124) 11.8% 224 192 16.6%
Cash and short-term deposits 1,370 1,470* -6.8%
* as at 31 December 2021
Results by Operating Segments
Revenue (AED millions) 2Q22 2Q21 Change % 1H22 1H21 Change %
Infrastructure 218 220 -1.1% 435 440 -1.1%
Managed Solutions 88 62 41.4% 144 107 35.1%
Mobility Solutions 66 61 7.8% 134 108 24.1%
Data Solutions 20 23 -12.0% 42 43 -4.4%
Total Revenue 392 367 6.9% 755 698 8.1%
Infrastructure
Infrastructure accounted for approximately 55% of Group revenue in 2Q22, mainly comprising a 15-year
long-term Capacity Services Agreement with the UAE Government. Overall revenue remained broadly
stable at AED 218 million [USD 59 million]. The Infrastructure business offers strong visibility on future cash
flows with contracted future revenue of approximately AED 6.5 billion [USD 1.8 billion] as of 30 June 2022,
which includes a 15-year T4-NGS Capacity Service Agreement worth AED 2.6 billion [USD 708 million] that
will support revenue growth from 2024 onwards. Yahsat remains well-positioned to further grow its
Infrastructure business with two potential new satellites under consideration (Al Yah 4 and Al Yah 5),
targeted for launch in 2026.
Managed Solutions
Managed Solutions, which contributed approximately 22% of Group revenue, continued its strong
performance with 2Q22 revenues increasing by 41.4%, resulting in 1H22 revenue of AED 144 million [USD
39 million], an increase of 35.1% year-on-year. This was underpinned by the February 2022 award of a 5-
year mandate worth AED 909 million [USD 247 million] focused on providing enhanced managed services
to the UAE Government for its satellite communication capabilities, effective from January 2022. During the
1H22 period, AED 86 million [USD 23 million] of this award was recognized. In 2Q22, the business
continued to build its contracted future revenues with the award of other contracts including a mandate to
design and deliver advanced satellite communications for UAE Government platforms worth AED 28 million
[USD 8 million]. Management expects the strong momentum in the Managed Solutions business to continue
in the second half of 2022.
Page 3 of 8Mobility Solutions
Mobility Solutions, accounting for approximately 17% of Group revenue, had another excellent quarter with
2Q22 revenues up 7.8% year-on-year. 1H22 revenues exceeded the prior year by 24.1% with strong growth
in both service and equipment revenue. Service revenue increased by 6.5% with double digit increases
across several parts of the business including Voice, Data and Intercarrier. Meanwhile, equipment revenue,
which increased by 95%, continued to benefit from the three-year AED 316 million [USD 86 million]
distribution agreement secured in 2021.
Data Solutions
YahClick, which accounted for approximately 5% of Group revenue, saw year-on-year revenue slightly
down by 4.4% in 1H22, mainly due to the wind-down in July 2021 of a multi-year, opportunistic capacity
deal that contributed AED 8 million [USD 2 million] of revenue in 1H21. The business continued to build
strong foundations for future growth with the subscriber base in the Consumer Broadband business growing
by 11% year-to-date and by 24% compared to the same period last year, underpinned by expansion across
the Africa region. In addition, it concluded an agreement to connect schools across Zimbabwe, rolled out
several cellular backhaul projects and signed a number of new managed network service orders.
Balance Sheet & Cashflow
The Group’s balance sheet remained robust. At 30 June 2022, net debt stood at AED 812 million [USD 221
million] with a leverage ratio (Net Debt to Adjusted EBITDA) of 0.9x. Together with Discretionary Free Cash
Flow for the period of AED 224 million [USD 61 million] and a cash conversion ratio of 93.1%, the Group is
well positioned to meet its growth and capital expenditure commitments and to sustain its attractive dividend
policy.
Guidance Update
Financial KPI 2022 Guidance
Previous – 1 March 2022 Updated – 9 August 2022
AED 1,524 – 1,616 million AED 1,542 – 1,616 million
Gross revenue
[USD 415 - 440 million] [USD 420 - 440 million] (narrowed)
Adjusted EBITDA Stable Stable (unchanged)
Discretionary Free AED 771 – 881 million AED 771 – 881 million
Cash Flow (‘DFCF’) [USD 210 - 240 million] [USD 210 - 240 million] (unchanged)
Capex and AED 771 – 845 million AED 771 – 845 million
Investments2 [USD 210 - 230 million] [USD 210 - 230 million] (unchanged)
Approximately 90% of 2022 projected Capex and Investments, equating to about AED 735 million [USD
200 million], is related to the T4-NGS program, for which funding arrangements are already in place.
-Ends-
2 ‘Investments’ refer to investments in associates, net of any dividends received, and capital returned.
Page 4 of 8Earnings Conference Call
The earnings announcement for the three months and six months ended 30 June 2022 can be found on
the Company’s website at https://www.yahsat.com/.
A conference call to discuss earnings, followed by a Q&A session, has been scheduled for Tuesday, 9
August 2022 at 16:00 (GST) / 13:00 (BST) / 8:00 (EDT). The call will be hosted by Ali Al Hashemi (CEO),
Andrew Cole (CFO), Amit Somani (CSO) and Yugesh Suneja (AVP Investor Relations). Interested parties
are invited to join the call by clicking here.
APPENDIX
USD Financial Highlights
Revenue by operating segment and year-on-year comparisons are provided in the table below.
USD millions 2Q22 2Q21 Change % 1H22 1H21 Change %
Infrastructure 59 60 -1.1% 119 120 -1.1%
Managed Solutions 24 17 41.4% 39 29 35.1%
Mobility Solutions 18 17 7.8% 36 29 24.1%
Data Solutions 6 6 -12.0% 11 12 -4.4%
Total Revenue 107 100 6.9% 206 190 8.1%
A financial overview for the three months and six months ended 30 June 2022 and year-on-year comparison
are provided in the table below.
USD millions 2Q22 2Q21 Change % 1H22 1H21 Change%
Revenue 107 100 6.9% 206 190 8.1%
Cost of revenue (12) (9) -37.6% (22) (13) -62.2%
Staff costs (21) (21) 0.0% (42) (41) -2.6%
Other operating expenses (11) (10) -11.4% (21) (21) 0.9%
Other Income 1 1 -24.9% 1 1 -6.1%
Adjusted EBITDA 64 61 3.9% 122 116 5.3%
Adjusted EBITDA Margin % 59.8% 61.5% 59.3% 60.9%
Net Income (Profit attributable
25 14 77.9% 45 30 50.7%
to the shareholders)
Normalized Net Income (Profit
25 21 19.2% 45 37 22.3%
attributable to the shareholders)
Discretionary Free Cash Flow (30) (34) 11.8% 61 52 16.6%
Cash and short-term deposits 373 400* -6.8%
* as at 31 December 2021
Page 5 of 8Alternative Performance Measures
Yahsat regularly uses alternative performance measures which are relevant to enhance the understanding
of the financial performance and financial position of the Group. These measures may not be comparable
to similar measures used by other companies; they are neither measurements under IFRS nor any other
body of generally accepted accounting principles and thus should not be considered as substitutes for the
information contained in the Group’s financial statements.
Alternative Performance Definition
Measure
Earnings from continuing operations before interest, tax,
depreciation, amortisation, impairment, fair value adjustments on
Adjusted EBITDA
investment property and share of results of equity-accounted
investments
Adjusted EBITDA Margin Adjusted EBITDA divided by Revenue
Adjusted EBITDA minus additions to intangible assets,
Operating Free Cash Flow development and maintenance related capital expenditure,
excluding capital work-in-progress
Cash Conversion Ratio Operating Free Cash Flow divided by Adjusted EBITDA
Net cashflow from operations less (a) Maintenance and
Discretionary Free Cash Flow’ Development CapEx, (b) Investments, (c) Net finance costs and (d)
(‘DFCF’) Advances from customers on long term capacity contracts (e.g. T4-
NGS).
Net Income Profit attributable to the shareholders
Profit attributable to the shareholders, adjusted for material one-off
items. 1H21 Normalized Net Income of AED 136 million [USD 37
million] is after adjusting for the one-off costs relating to the
Normalized Net Income refinancing exercise which completed in June 2021, notably the
termination of interest rate hedges (+AED 19 million [+USD 5
million]) and accelerated recognition of unamortized finance costs
(+AED 7 million [+USD 2 million]).
Net Income (profit attributable to the shareholders) divided by
Net Income margin
Revenue
Normalized Net Income margin Normalized net income divided by Revenue
Financial numbers presented in millions are rounded to whole numbers while those presented in billions
are rounded to one decimal place. All percentages are rounded to one decimal place. Financial numbers
and percentages have been derived from underlying numbers. The numbers in UAE Dirhams (AED) have
been derived by converting the underlying US Dollar (USD) values using a standard exchange rate of 1
USD = AED 3.6725 and rounded. Due to rounding, numbers presented may not add up precisely to the
totals provided and percentages may not precisely reflect the absolute figures.
Page 6 of 8About Yahsat
Al Yah Satellite Communications Company PJSC (Yahsat) is a public company listed on the Abu Dhabi
Securities Exchange (ADX) and a subsidiary of Mubadala Investment Company PJSC, offering multi-
mission satellite solutions in more than 150 countries across Europe, the Middle East, Africa, South
America, Asia and Australasia.
Yahsat’s fleet of 5 satellites reaches more than 80% of the world’s population, enabling critical
communications including broadband, broadcasting, backhauling and mobility solutions. Based out of Abu
Dhabi in the UAE, Yahsat provides C, Ku, Ka and L-band satellite communications solutions for land,
maritime and aero platforms to consumers, governments and enterprises. Its businesses consist of Yahsat
Government Solutions, Thuraya, YahClick (powered by Hughes) and YahLink. Yahsat also participates in
Hughes do Brasil, an equity partnership with Hughes, and Yahlive, an equity partnership with SES. In 2020,
Yahsat commenced construction of Thuraya 4-NGS, the next generation telecommunications system for
Thuraya, which is due to be in service during 2024.
For more information, visit: www.yahsat.com; Follow us on Twitter: @YahsatOfficial
Contacts
Media: Investor Relations:
Ahmed Al Shamsi Yugesh Suneja
A/EVP of Communications – Yahsat AVP Investor Relations – Yahsat
Aomran@yahsat.ae M: +971 55 8897521
M: +971 55 9001954
Adham Kamel
Analyst Investor Relations – Yahsat
M: +971 50 9400519
InvestorRelations@yahsat.ae
Teneo
Yahsat@teneo.com
M: +971 58 581 4954
Page 7 of 8Legal Notice and Cautionary statement regarding forward-looking information
This announcement includes forward-looking statements, which are based on current expectations and
projections about future events. These statements may include, without limitation, words such as "expect",
"will", "looking ahead" and any other words and terms of similar meaning. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and its
investments, and speak only as at the date of this announcement. Forward-looking statements are based
on assumptions of future events and information currently available to the Company which may not prove
to be accurate and the Company does not accept any responsibility for the accuracy or fairness thereof and
expressly disclaims any obligation to update any such forward looking statement. No representation or
warranty is made that any forward-looking statement will come to pass. You are therefore cautioned not to
place any undue reliance on forward-looking statements. For further information regarding forward-looking
statements, and the factors that may cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements please refer to our Annual Report for 2021, which
is available on our website at https://www.yahsat.com/Reports/2021/index.html
The amount and payment of dividends by the Group is subject to consideration by the Board of Directors
of the cash management requirements of the Group for operating expenses, interest expense, and
anticipated capital expenditures, and market conditions, the then current operating environment in its
markets, and the Board of Directors’ outlook for the business of the Company. In addition, any level or
payment of dividends will depend on, among other things, future profits and the business plan of the
Company, as determined at the discretion of the Board of Directors.
Neither this announcement nor anything contained herein constitutes a financial promotion, or an invitation
or inducement to acquire or sell securities in any jurisdiction.
Page 8 of 8

Sentiment: neutral