NetLink NBN Trust posts 9.6% rise in Q3 net profit of S$21.5m

FIBRE broadband operator NetLink NBN Trust saw third-quarter earnings lifted by rising home broadband connections, according to unaudited results released on Monday.

Net profit was up by 9.6 per cent year-on-year for the three months to Dec 31 to S$21.5 million, while revenue ticked up by 2.9 per cent to S$91.6 million, as higher residential revenue was eroded in part by lower contributions from other business segments.

Revenue from the main residential business swelled, with NetLink notching 1.42 million residential connections as at Dec 31 last year, up from 1.28 million at end-2018. Contributions from non-residential connections, as well as non-building access points, were also up.

But installation-related revenue dipped after Mainboard-listed telco StarHub finished migrating its cable subscribers to fibre in September, while a decrease in other kinds of projects fuelled the drop in both diversion and ducts and manholes service revenue.

For the nine months, net profit rose by 14.5 per cent to S$65.6 million, while revenue grew 4.5 per cent to S$277.8 million.

NetLink expects to see higher revenues from key connection services in FY2020 compared with the year before, as residential connections increase, even though capital expenditure will also increase, the manager said in its outlook statement.

Besides working to expand its network in new housing estates, the manager added that the group will also explore market opportunities from the development of Singapore's 5G network.

No distribution was recommended, as the trust makes payouts on a half-yearly basis.

The counter shed S$0.01 or 0.99 per cent to S$1.00 on Monday before the results were announced.