Bayanat Maintains Strong Financial Performance Through 1st Half of 2024

Bayanat (ADX: BAYANAT), a leading AI-powered geospatial solutions provider, announced its robust financial results for the first half of 2024. The company achieved a revenue of AED273 million, marking an 18% year-over-year increase. The second quarter alone saw a 23% year-over-year revenue growth, highlighting the company's sustainable expansion. Bayanat's focus on deploying world-class AI solutions and enhanced geospatial services for its clients significantly contributed to this revenue growth, with substantial inputs from Smart Operations Solutions (SOPS) and Smart Geospatial Solutions (SGS).

Strong Profit Margins

The company reported a Gross Profit of AED84 million in H1 2024, reflecting a gross margin of 31%. This profit was largely driven by Bayanat’s emphasis on key segments such as Smart Space Solutions (SPAS), Smart Operations Solutions (SOPS), and Smart Geospatial Solutions (SGS), which continued to deliver strong performance and profitability.

Hasan Al Hosani, Managing Director of Bayanat, said, “As we prepare for our groundbreaking merger to become Space42, we have made strategic investments that continue to improve our offerings for our clients. Bayanat’s geospatial intelligence solutions will be a key contributor to Space42’s position as a global space technology champion. Our financial stability and commitment to innovation, R&D, and strategic partnerships will evolve through Space42 as we continue to deliver exceptional shareholder value.

“The upcoming Bayanat and Yahsat SAR satellite launch, in collaboration with ICEYE, will further strengthen our capabilities in Earth Observation. This launch will mark a significant milestone in our journey towards expanding our space technology offerings, delivering cutting-edge innovations to our customers, and further solidifying the UAE’s ambitious space strategy.” continued Al Hosani.

EBITDA and Strategic Initiatives

Bayanat's EBITDA reached AED14 million, representing a 5% margin. The company’s ongoing efforts in research and development and talent acquisition were reflected in this half-year EBITDA performance. While these strategic initiatives may have a short-term impact on EBITDA, they align with the company's merger strategy and are expected to enhance Space42’s product portfolio and future revenue growth upon the completion of the merger.

Debt-Free Status and Strong Cash Reserves

Bayanat remains debt-free with a strong cash balance of AED571 million. This solid financial position ensures that Space42, the entity formed post-merger, will be well-equipped to invest in continued technological advancements and pursue both organic and inorganic growth following the merger's completion.

Net Profit and Financial Income

Net Profit after tax for H1 2024 reached AED19 million, representing a net margin of 7%. Bayanat continued to generate significant financial income by investing its excess cash into financial instruments. In line with UAE Federal Decree-Laws, the company has recorded a provision for Corporate Tax on its 2024 taxable income.

Merger with Yahsat to Create Space42

In December 2023, Bayanat announced a strategic merger with Yahsat to create Space42, a space technology leader. The merger received approval at each company’s respective General Assembly Meetings in April 2024 and is expected to be finalized in the second half of 2024.

Global Presence and Strategic Partnerships

Throughout the first half of 2024, Bayanat showcased its innovative products and solutions at leading global events such as the Singapore Airshow, UMEX & SimTEX, and DriftX. The leadership team also participated in top global leadership events, including the World Government Summit and the World Economic Forum, alongside prominent figures in government and the private sector.

Advancing Technological Innovations

Bayanat signed multiple Memorandums of Understanding and partnerships to advance its technological innovations. Notable collaborations include an agreement with IMKAN to develop a smart mobility infrastructure project, a partnership with OXA to integrate AI-powered geospatial analytics with autonomous vehicle technology, and a collaboration with Autonomous a2z to pioneer cutting-edge Autonomous Fleet operations.

Access to Full Financial Disclosure

The complete financial disclosure is available on the investor relations section of Bayanat’s website.