Yahsat is targeting strong revenue growth from commercial data and satellite phone business

Al Yah Satellite Communications – better known as Yahsat – is hailing strong revenue growth in its commercial data and satellite telecom business as the Abu Dhabi company prepares to launch its next satellite in 2023 and expand into new markets.

“We will expand our reach into more markets and business segments,” said Yahsat Chief Commercial Officer Suleiman Al Ali. National.

Mr. Ali He is the CEO of Turaya, Yahsat’s mobile satellite telecom arm, which it acquired from Etisalat in 2018.

In his new role as CCO, he will lead Yahsat’s business operations, which include YahClick, the data solutions business, and Turaya, the mobile phone business.

Yahsat raised its projected revenue for the end of the first half of 2022 by 1.3 percent to at least Dh1.54 billion ($419 million) from earlier guidance of Dh1.52 billion, leaving the top end unchanged at Dh1.62bn.

The company’s first-half 2022 revenue stood at Dh755m, up more than 8 per cent from the same period a year ago, while net profit attributable to shareholders for the six months stood at Dh167m, up more than 50 per cent from the same period last year. 2021.

“To expand the revenue share of our business data and mobile telecom business, we will soon be offering bundled packages to our customers at globally competitive prices,” said Mr. Ali.

By combining the roles of Yahsat’s Chief Commercial Officer and Turaya’s CEO, the company will design and maintain an integrated strategy to reach new geographies and market segments.

“In my new role as CCO, I have access to all the solutions and products of the group and the markets that both companies are operating in. In terms of geography, there is a lot of common ground, offering synergies in market access strategies,” said Mr. Ali.

Thuraya, currently covers 150 countries, YahClick is available in more than 60.

Both companies have a strong footprint in the Middle East and Africa region and share a number of business partners and distributors.

“This gives us the opportunity to package many solutions together,” he said.

“We have a strong position in the market because of our technical capabilities and strong financial support from Mubadala and other investors.”

While the bulk of the group’s contract revenue will come from government projects for the next few years, Mr. Ali said, as the business expands further, the business’s contribution to the overall revenue pool is set to rise.

The company is heavily involved in mobile data coverage for small and medium enterprises and businesses in remote areas where data access is not available. In addition, it is focused on the growing maritime business, with a focus on fishing vessels and offshore oil and gas installations, agricultural research, weather forecasting and the fast-growing Internet business, which the company expects to be a key driver of its business. Business.

“We have a strategic plan to position Yahsat among the leading IoT players. This is a major growth area for our business,” said Mr. Ali.

One of Yahsat’s major projects is the Turaya 4 Next Generation Satellite (T4-NGS), which is scheduled to launch next year and begin commercial operations in the second half of 2024.

The satellite has a long-term managed capacity service agreement with the UAE government and aims to support next-generation mobility solution services with a focus on mobile data, maritime and IoT components.

The company, one of the top 10 satellite operators by revenue, expects its global data services revenue to grow significantly as it launches its data services using T4-NGS with advanced 4G and 5G capabilities.

“The new satellite will enable the commercial business to offer a new portfolio of products with superior connectivity for aero, maritime and land-based applications,” he said.

While the project is on schedule, overall, more than 80 percent of Yahsat’s D698m capital expenditure and investment by 2022 is related to the T4-NGS program.

The capex associated with the T4-NGS program will be fully funded through a combination of debt external credit arrangements and a significant advance payment the company received from the UAE government.

Last year, Yahsat was appointed by the United Arab Emirates government to carry out a detailed evaluation and recommendation of two new satellites, Al Yah 4 and Al Yah 5, which are scheduled to launch in 2026.

Mr. Ali said the two new satellites are expected to enhance Yashat’s service with additional capacity, coverage and capacity for next-generation applications. They also offer a huge growth opportunity for Yahsat and further “increase our revenue from both government contracts and business”.

“The new satellites will greatly enhance the capabilities of our existing Al Yah 1 and Al Yah 2 satellites with new technologies.

The company is currently evaluating the cost of this project and how to finance it. With a very low leveraged balance sheet, the company said last month it had enough room to raise debt to fund the program.

In the year Founded in 2007, the satellite operator provides multi-mission satellite services in more than 150 countries in Europe, the Middle East, Africa, South America, Asia and Australia. It currently has a fleet of five satellites that reach more than 80 percent of the world’s population.

Mr. Ali, who has been in the satellite telecom business in the UAE and has been associated with Yahsat for almost a decade, is convinced of the global competitiveness of Yahsat’s business model.

“Although we offer reliable and innovative solutions to our customers, in all markets, we remember the reasonable price, and we prepare our products and services to suit each market segment.

The UAE’s space business ecosystem has thrived over the past decade and is heavily involved in international commercial satellite telecom and information trade.

“The launch of new space programs and the support it is receiving from the government will create a very competitive business model with high participation from UAE nationals, creating a local workforce in this sector,” said Mr. Ali.

Updated: August 21, 2022, 5:19 am