FIBRE network infrastructure owner NetLink NBN Trust reported a 11.3 per cent increase in net profit to S$27.6 million for the first quarter of its 2023 financial year ended June 30, 2022, from S$24.8 million a year ago, according to a bourse filing on Monday (Aug 15).

Revenue for the quarter grew by S$4.5 million or 4.8 per cent from the year-ago period to S$97.9 million, from S$93.4 million previously.

The revenue increase was mainly due to higher ancillary project revenue, revenue from residential, non-residential, NBAP (non-building address point) and segment connections and co-location revenue, though this was partially offset by lower central office revenue, said its manager.

It added that ancillary project revenue contributed most significantly to the increase, as more diversion projects were completed as compared to last year.

At 62 per cent, residential connection revenue remains the group’s largest revenue contributor.

As at June 30, there were nearly 1.47 million residential connections, representing a 1.4 per cent year-on-year rise.

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NetLink’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for Q1 FY2023, at S$73 million, were 5 per cent higher than last year’s Q1 Ebitda of S$69.5 million, as a result of the higher revenue.

The group’s net cash from operating activities of S$88.1 million in Q1 was S$21.8 million higher than the same period last year, due to improved working capital and higher profits, the manager said.

NetLink units closed S$0.005 or 0.5 per cent lower at S$0.94 on Monday, before the results were announced.