Space42, a company based in the UAE, saw its profit increase by 17.5% to $118.8 million over nine months, even though its revenues went down
Space42 PLC, a space tech company based in the UAE, announced on Thursday that its profit for the first nine months of 2024 increased by 17.5% compared to last year, reaching $118.8 million. This was despite a big drop in revenue.
Nine-month performance
The company’s revenue dropped by 7.2%, going from $461.8 million last year to $428.5 million this year, according to a filing on the Abu Dhabi Securities Exchange (ADX).
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also decreased by 5.7%, from $243.8 million to $229.9 million for the period ending September 30, 2024.
However, Space42’s operating profit increased by 22.7%, reaching $107.5 million.
The company’s net finance income for January to September was $17.9 million, which is about 18% higher than the same period last year.
Overall, Space42’s total income, which belongs to its shareholders, went up by 3.4%, totaling $103 million.
The company’s strong performance was mainly due to the successful merger between Bayanat (a telecom operator) and Yahsat (a satellite communications firm) on October 1, 2024, as stated in the filing.
Share price
The shares of Space42 PLC were trading at 57 cents (AED 2.08) at 11:10 am AST on Thursday, giving the company a total value of $2.7 billion (AED 9.9 billion).
Important quote
Karim Michel Sabbagh, the managing director of Space42, said, “As we combine our skills and resources across the entire process, our focus will be on profitable growth. We will work on projects that add value and where we have a strong advantage, invest in new capabilities, and find opportunities that can grow significantly.”
“We have a clear plan to achieve profitable growth by using our strengths and building new skills in areas like direct-to-device (D2D), Internet of Things (IoT), geospatial data collection, and advanced analytics. This will help us offer more value to governments and businesses around the world,” Sabbagh added.
Yahsat-Bayanat merger
Yahsat and Bayanat merged to form a new company called Space42, which began trading on the Abu Dhabi Stock Exchange (ADX) after the merger was announced in December 2023.
When the merger was announced, it was said that the new space technology company would be worth $4.1 billion (or AED 15 billion).
Published: 7th November 2024
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