Home Business Yahsat announces increased interim cash dividend of AED196.6 million for first half of 2022

Yahsat announces increased interim cash dividend of AED196.6 million for first half of 2022

by Dubai Forum
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ABU DHABI, 21st September, 2022 (WAM) — Al Yah Satellite Communications Company (Yahsat) has announced that it will pay an interim cash dividend of AED196.6 million (US$53.5 million) for the first half of 2022. The interim dividend will be paid by 14th October 2022 to all shareholders of record as at 30th September 2022 and is equivalent to 8.06 fils (US$2.19 cents) per share.

On an annualised basis, the Group is on track to deliver a total dividend of at least AED393.3 million (US$107.1 million) for the full 2022 financial year, an increase of 2% over the prior year and reinforcing its commitment to delivering attractive shareholder returns. This would imply a 5.8% annual dividend yield for 2022 (based on a closing share price of AED2.78 on 20th September 2022).

As per the Group’s approved policy, the second and final dividend for 2022 is expected to be paid in April 2023, subject to the Board of Directors’ recommendation and shareholders’ approval at the next annual general assembly.

Musabbeh Al Kaabi, Chairman of Yahsat, commented, “Since our listing on ADX in 2021, we have demonstrated sustained growth and resilience in the face of challenging macroeconomic conditions. Our strong year-to-date performance was evident in our first-half results, when we recorded our highest-ever revenue for the period with significant growth in Adjusted EBITDA and Net Income.

“With good visibility on future earnings, and contracted future revenue exceeding AED7.7 billion, equivalent to 5.2 times our 2021 annual revenue, we are in a solid position to continue to reward shareholders. This interim dividend reaffirms our commitment to grow the dividend by at least 2% per year, and we are on track to pay a total dividend of at least AED393.3 million for the full year.”

Ali Al Hashemi, Group Chief Executive Officer of Yahsat, said, “We are committed to pursuing new growth opportunities and we are confident that our robust balance sheet, agile and resilient business model, and proven track record, will continue to enable us to capture long-term value.

“Our dividend policy is well-supported by strong discretionary free cash flow, which we expect to be approximately twice our full-year dividend payment for this year. The strength of our business today, coupled with our confidence in future revenues and profitability, provide a solid foundation for creating shareholder value through a combination of attractive dividends and growth.”

In August 2022, with approximately 90% of projected annual revenue for 2022 already secured, Yahsat announced the narrowing of the range of its FY2022 revenue guidance. The Group expects annual revenues of at least AED1,542 million (US$420 million) with the upper end of the range unchanged at AED1,616 million (US$440 million). All other guidance remains unchanged.

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