NileSat, the Egyptian Satellite Company SAE, trading as EGSA.CA, revenue declines for the fourth time from USD 156.22 million in 2017 to USD 111.76 million at the year-end December 31, 2021. This represents a year-on-year (YoY) decrease of 10.66% from USD 125.1 million compared to the previous year and 28.46% in comparison to 2017.
Similarly, the company’s income statement on a quarterly basis posted a decrease in revenue from USD 27.18 million in the period ended September 30, 2021, to USD 25.09 million in the period ended December 31, 2021. This represents a quarter-on-quarter (QoQ) decline of 7.59%.
The company’s income statement shows a similar trend in the net profit, which declined at a compounded average growth rate (CAGR) of 18.17% from USD 68.57 million in the fiscal year ended December 31, 2017, to USD 30.75 million on December 31, 2021. That is, within the four-year period, NileSat’s gross profit had dropped by more than half. In comparison to the previous fiscal year, this represents a drop of 9.98%.
The quarter-on-quarter (QoQ) analysis showed that the satellite radio and television broadcasting operator’s net profit skyrocketed by 395.26% from USD 2.11 million in the period ended September 30, 2021, to USD 10.45 million in the period ended December 31, 2021.
Further analysis to determine NileSat’s profits to the total amount of money it generated, revealed a net margin of 27.51% at the end of the fiscal year ended December 31, 2021. This means that for every USD 1 that NileSat generated as revenue in 2021, about 28 cents were recorded as profit. However, in the last quarter alone, which ended December 31, 2021, NileSat kept about 42 cents as profit for every USD 1 it recorded as revenue.
On the contrary, the cost of revenue also called the cost of sales, which includes direct labour and raw materials, among others, do not follow a similar pattern. Within the four-year period, it declined insignificantly by 0.94% CAGR from USD 92.29 million. However, in the fiscal year ended December 31, 2021, the cost of sales was down by 6.53% from the same period last year.
With the successful launch of the NileSat-301 communication satellite, which will expand broadcast services over the Middle East and North Africa (MENA) region, as well as over southern Africa and the Nile Basin, the company is expected to rake in more revenue. Space In Africa