The manager of Netlink NBN Trust has declared a DPU of 2.56 cents for the 1HFY2022 ended September period, representing a 1.2% increase from 2.53 cents in 1HFY2021.
Similarly, revenue was up by 3.6% to $187.9 million from $181.5 million in the previous year, mainly due to higher residential, non-building address points (NBAP) & segment connections revenue, installation-related revenue and diversion revenue, partially offset by lower ducts and manholes service revenue and Central Office revenue.
Residential connections remained the NetLink’s core revenue driver, with recurring revenue from residential connections increasing by 1.3% to $120.0 million, supported by a higher number of connections in 1HFY2022. As at Sept 30, there were 1,450,730 connections as compared to 1,437,360 connections in the same period last year.
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NBAP and segment connections revenue increased by 51.1% y-o-y to $6.0 million as a result of higher demand for point-to point connections and Central Office-diversity connections to support mobile network rollout and other projects requiring high resiliency.
The NetLink Group saw $2.7 million higher installation-related revenue to $9.6 million last year, mainly due to higher residential service activations and non-residential termination point installation orders. Diversion revenue also increased by $1.2 million to $4.4 million, attributed to more projects completed mainly for government agencies as compared to 1HFY2021 where fewer number of projects were completed due to stoppages in construction work nationwide.
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Meanwhile, Central Office revenue decreased by $0.6 million toS$8.9 million mainly due to spaces surrendered by the main lessee in NetLink Group’s seven Central Offices. Ducts and manholes service revenue decreased by $0.5 million to $14.1 million mainly due to a reduction in service revenue from the leasing of NetLink Group’s ducts.
Ebitda and profit after tax (PAT) were lower by 9.4% and 10.5% y-o-y, respectively. The decrease was due mainly to a remeasurement loss of $12.4 million relating to finance lease receivables arising from the reduction in rental rates upon the renewal of the Central Office lease agreements with the lessee from September 2021. In addition, there were lower government grants recorded in this period as compared to the amount received in prior corresponding period.
As at end-September, cash and cash equivalents stood at $172.2 million.
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On the outlook, NetLink intends to remain vigilant as Singapore transits towards being a Covid-19 resilient nation. The group has put in place measures to minimise any disruption should there be any adverse developments.
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NetLink Group’s business model is resilient and is well-supported by predictable revenue streams from fibre connections to residential and non-residential premises, NBAP locations, network segments and other point-to-point connections and contracted revenues.
“The group’s balance sheet and liquidity remains strong, underpinned by stable cashflows and access to financial resources to support future capital expenditure. The group expects to maintain its distributions to unitholders,” says NetLink Group in its results media release issued on Nov 3.
To that end, NetLink Group intends to continue expanding its network reach, enhancing its network capabilities and exploring opportunities to invest in telecommunication infrastructure business.
Units in NetLink NBN Trust closed at $1.03 on Nov 3.
Photo: Stock
