NetLink NBN Trust posts S$21.7m net profit for Q3, up from forecasts

NETLINK NBN Trust on Monday posted a profit attributable to unitholders of S$21.7 million for its third quarter ended Dec 31, up 32.5 per cent from its earlier forecast of S$16.4 million.

Revenue was 0.6 per cent higher than forecast at S$83.4 million, mainly due to higher monthly recurring Residential and Non-Residential connection revenue, higher Ducts & Manholes Services revenue and Central Office revenue.

The group listed on the Singapore Exchange mainboard on July 19, thus no year-on-year comparative figures were provided.

Earnings per unit came up to 0.56 cent, while Ebitda (earnings before interest, taxes, depreciation and amortisation) was S$63.2 million, 10.8 per cent above the forecast of S$57 million.

No dividend was declared for the quarter.

In a filing to the bourse, the group said it expects to deliver the financial performance and distribution forecast as stated in the prospectus.

It has commenced utilising the Hougang Central Office to serve new housing estates in Sengkang and Punggol, and is continuing to expand its network in new housing estates, with the most recent being Tengah. The first batch of HDB homes in Tengah is expected to be launched in 2018. In total, an estimated 42,000 new residential homes are expected to be developed over the next two decades, said the group.

The group has also been working with the Requesting Licencees (RLs) to anticipate future demand in the Non-Residential and non-building address points (NBAP) segments, and to support the RLs' efforts to acquire new corporate and NBAP customers, the company said.