More Africa NewsYahsat posts an increase in revenue driven by demand for connectivity during the first 9 months of 2022

February 21, 2023by myles0

Internet connectivity via satellite has regained value in Africa over the past seven years. Several companies are currently competing for this market where telecom operators are unable to effectively cover the entire continent. 

The Emirati provider of telecom satellite services, Al Yah Satellite Communications Company (Yahsat), presented its financial results. Of the five regions where the company operates, Africa is posting a good financial performance. Yahsat’s income there increased from $8,347,000 as of September 30, 2021 to $12,374,000 as of September 30, 2022.

Africa is with the United Arab Emirates ($269,593,000) and several small markets grouped under the name “others” ($905,000) the only markets that recorded growth. Rather, a decline was observed in Europe, Asia and North America. Africa contributed 3.93% of Yahsat’s total revenue which stabilized at $314,584,000. Up 10.65% from the $284,294,000 recorded for the same period in 2021.

According to Ali Al Hashemi, Group Chairman and CEO of Al Yah Satellite Communications Company, the planned acquisition of the T4-NGS satellite which is expected to be launched in the first half of 2024 and enter service in the first half of 2025 will strengthen the long-term service offering and company revenues, particularly in the United Arab Emirates.

He added that ” the potential acquisition of two new satellites, Al Yah 4 and Al Yah 5, remains under study for a launch in 2026, which will ensure continuity of service well beyond the duration life of our current fleet  “.

Yahsat’s financial growth in Africa is driven by growing demand for broadband connectivity. Remote areas, hitherto poorly covered by telecom networks, are increasingly expressing a need for the Internet, which satellite operators are hastening to satisfy.

Since 2020, Yahsat has multiplied commercial agreements with local service providers to offer its telecom services by satellite in several African markets. The company is elbowing with companies such as SES, Spacecom, Eutelsat and GilatSat.

Source: Agence Ecofin

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