Friday, November 8, 2024
Friday, November 8, 2024
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UAE corporate tax drags Yahsat first-quarter income down 8%

Revenues grow 1% to a record AED371m while EBITDA grows 7% to reach AED247m

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  • Working on completing the procurement of Thuraya 4, to be launched into space in the second half of this year.

UAE’s satellite solutions provider – Yahsat – net income fell eight per cent to AED99 million for the first three months of the year, reflecting the introduction of nine per cent UAE corporate tax this year.

However, revenues grew one per cent for the period versus the prior year to a record AED371 million while EBITDA grew seven per cent to reach AED247 million.

Underpinning this strong performance was revenue growth across two segments. Infrastructure, the Group’s 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 one per cent.

Managed Solutions, the Group’s second largest segment by revenue, providing complete value-added satellite communications solutions primarily to the UAE Government and related entities, reported impressive revenue growth of 19 per cent as well as higher margins, building on a strong prior year performance.

The Mobility Solutions segment, which provides mobile satellite services using L-band spectrum, recorded lower revenues, mainly on fewer equipment sales.

Data Solutions, the smallest segment, offering satellite-based broadband data solutions, saw revenues fall on lower subscriber numbers.

 “Yahsat has achieved another set of strong quarterly results, demonstrating further progress in growing our core business of serving the UAE Government’s requirements for satcom solutions,” Ali Al Hashemi, Group Chief Executive Officer of Yahsat, said.

“We also continue to progress toward finalising the full contract for the new $5.1 billion capacity and Managed Services Mandate with the UAE Government and the related procurement contract with the satellite manufacturer for two new satellites, Al Yah 4 and Al Yah 5. Further, we are working on completing the procurement of Thuraya 4, to be launched into space in the second half of this year, which will renew and continue Thuraya’s success story for many more years to come.”



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