Mubadala-owned Al Yah Satellite Communications Company (Yahsat) will be included in global index services provider Morgan Stanley Capital International’s (MSCI) small-cap indexes from December 1st as it seeks to diversify its investor base.
It has been added as a constituent in the MSCI All Country World Index (ACWI) Small Cap Index, MSCI Emerging Markets Small Cap Index, and the MSCI UAE Small Cap Index after fulfilling the necessary listing requirements.
Yahsat’s inclusion shows global financial institutions’ growing confidence in the company’s strong financial performance and capacity to deliver among the best dividend yields to its growing shareholder base on the Abu Dhabi Securities Exchange (ADX). It will also encourage local and international consumers and institutional investors to invest in Yahsat for the long term.
The company recently released its third-quarter (Q3) financial results, reporting $272.3 million in revenue for the first nine months of the year, indicating a strong and consistent performance from Q1 2021. Normalized Net Income of $54.5 million exceeded the prior year by $16.7 million or 44.3 percent for the nine-month period.
Ali Al Hashemi Group CEO-Yahsat
“Yahsat’s inclusion in three MSCI indices serves as a testament to the Group’s position as a local industrial champion and a key contributor to the development and diversification of the UAE economy. This development is expected to further strengthen Abu Dhabi’s position as an attractive destination for investors.”
This robust performance has led the Board to endorse management’s recommendation to update the Group’s current dividend policy, allowing it to distribute dividends on a semi-annual basis going forward, subject to shareholder approval. Investors can expect to receive a dividend of around 16 fils per share during 2022. The dividend is expected to grow by at least 2 percent per year.
Mr. Al Hashemi further added that “This achievement is a reflection of Yahsat’s proven operational and financial strength and underpins our ongoing commitment to generating shareholder value by investing in next-generation technologies and expanding our geographical footprint. This is an important milestone that will allow us to further diversify our investor base and pave the way for increased recognition internationally.”
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