NetLink NBN Trust posts DPU of 2.57 Singapore cents for H2 FY2022, up 0.8%

FIBRE network infrastructure owner NetLink NBN Trust reported a 0.8 per cent year-on-year increase in distribution per unit (DPU) to 2.57 Singapore cents for the 6 months ended March 31, 2022.

Revenue for the 6-month period was 1.4 per cent higher at S$189.68 million on the back of higher connections revenue, which was partially offset by lower Central Office revenue. Meanwhile, profit attributable to unitholders rose 2.3 per cent to S$51.18 million.

For FY2022,  the group chalked up a revenue of S$377.61 million, up 2.5 per cent from FY2021, mainly due to higher residential, non-building address points (NBAP) & segment connections revenue, installation-related revenue and ancillary project revenue. Residential connections revenue - which contributed to nearly 64 per cent of total revenue - increased S$2.8 million to S$240.7 million in line with the higher number of connections.

Profit attributable to unitholders slipped 3.7 per cent to S$91.26 million in FY2022. According to NetLink, the decrease was mainly due to a remeasurement loss of S$12.4 million in FY22, 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.

The DPU for H2 FY2022 will be payable on June 10. With this, the total DPU for FY2022 works out to 5.13 cents, or 1 per cent higher than FY2021.

NetLink Group’s net cash from operating activities in FY2022 stood at S$258.73 million, or nearly S$5.8 million lower than FY2021, due to higher trade and other receivables from higher billings in ancillary project and contract assets.

In an update on outlook, NetLink Group is continuing to expand its network to reach new residential dwellings and commercial buildings. In addition, NetLink said that it will continue improving its presence at data centres and will invest in a new Central Office in Singapore, while also exploring opportunities to invest in telecommunication infrastructure businesses overseas.

Meanwhile, NetLink is currently undergoing the review of NetLink Trust’s services - including prices - offered under its interconnection offer with the IMDA. The regulatory review is expected to be completed by early next year. 

The group also said that it expects to maintain its distributions to unitholders.

Units in Netlink closed at 98 Singapore cents on Tuesday (May 17), down half a cent or 0.51 per cent.