SINGAPORE (May 13): NetLink NBN Trust has declared a 4Q19 DPU of 2.44 cents for the period from Oct 1, 2018 to Mar 31.
This brings the total DPU for FY19 to 4.88 cents, which exceeds projection by 5.2% and translates to a yield of 6.0%.
4Q19 earnings increased 30.7% to $20 million, compared to $15.3 million in 4Q18.
Revenue for the quarter of $87.9 million was in line with forecast and 8.9% higher than $80.7 million a year ago.
Residential connections revenue increased by $1.6 million due to the higher number of connections of 1,327,732 as at end March compared to projection of 1,278,260.
The higher ducts and manholes service revenue of $1.5 million was mainly due to recovery of costs for ducts and manholes joint-build projects.
The lower installation-related revenue of $2.8 million was mainly due to: some requesting licences (RLs) undertaking the installation on their own for non-building address points (NBAP) and Non-Residential connections supplied by the NetLink Group and the deferral of revenue from service activation charges (which came into effect on 1 Jan 2018) due to service obligations that have yet to be performed.
Total expenses of $71.3 million were $0.8 million lower than projection mainly due to lower finance costs and other operating expenses partially offset by higher operation and maintenance costs. And 4.0% lower than the corresponding period.
Tong Yew Heng, CEO of the trustee-manager, says, “Our financial performance and distributions to Unitholders have exceeded IPO projections for the year, supported mainly by a strong increase in residential connections and diversion project income. For the upcoming financial year, we expect revenues from key connection services to be higher than that of FY19, driven by higher residential connections and installation-related revenues.”
Units in NetLink NBN Trust closed at 83 cents on Monday.
