NetLink NBN Trust posts 36% jump in H1 net profit to S$54.6m

FIBRE network infrastructure provider NetLink NBN Trust on Wednesday (Nov 2) reported a 36.1 per cent jump in net profit to S$54.6 million for the half year ended Sep 30, compared to the same period last year.

The jump in net profit came despite a slower 6.2 per cent rise in revenue to S$199.6 million in H1, compared to the year-ago period, NetLink's interim financial statements showed. This was due to significantly lower operating expenses in H1, the company noted. In H1 FY22, there was a S$12.4 million remeasurement loss due to change in rental rates upon the renewal of its central office lease agreements.

At the same time, there were higher ancillary project revenue, connections revenue and co-location and installation-related revenue, all of which helped to offset lower central office revenue, the company said.

Residential connections remained the key contributor to NetLink's overall revenue, accounting for 61 per cent of total revenue. However, this segment recorded a rise in revenue of only 1.4 per cent in H1, compared to the same period last year.

Meanwhile, revenue from ancillary projects jumped 157 per cent - the largest increase - to S$11.8 million due to more diversion projects being completed, the company said.

NetLink reported a distribution per unit of 2.62 Singapore cents for H1, an increase of 2.3 per cent from the same period last year.

The group said it is continuing the expansion of its network to reach new residential dwellings and commercial buildings.

It said it plans to collaborate with the requesting licensees and retail service providers to increase subscriptions of fibre broadband plans from first-time users, in view of Singapore's digital inclusion effort. It will also continue partnerships with them to support their efforts to acquire new businesses.

This means NetLink will extend customised pricings to support requesting licensees participating in projects involving multi-site or nationwide connectivity, and make available offerings to facilitate digital transformation projects of small and medium enterprises, it said.

NetLink shares closed at S$0.865 on Wednesday, down S$0.005 or 0.6 per cent.

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