NetLink Trust posts 5.3% rise in earnings due to higher revenue

Singapore

FIBRE optic cable owner NetLink NBN Trust reported a 5.3 per cent year-on- year increase in net profit to S$24.8 million for its first quarter ended June 30, 2021, according to an exchange filing on Monday.

The company's revenue for the same quarter grew by S$4.4 million, or 5 per cent year on year, to S$93.4 million.

This is mainly due to higher installation-related revenue, residential, NBAP (non-building address point) and segment connections revenue and diversion revenue partially offset by lower central office revenue, NetLink said.

It added that installation-related revenue contributed most significantly to the increase as its contractor resources returned to normal levels compared with the same period in the previous year, which was affected by the "circuit breaker", Singapore's partial lockdown.

There were nearly 1.45 million residential connections as at June 30, a 1.5 per cent year-on-year increase.

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NetLink's earnings before interest, taxes, depreciation and amortisation (Ebitda) for Q1 FY2022 was 1.1 per cent higher than the same period last year as a result of the higher revenue.

However, this was partially offset by higher installation costs, in line with a higher level of activities and a lower level of government grants compared with a year ago, the company said.

The group's net cash from operating activities of S$66.3 million in Q1 was S$1.2 million higher than the same period last year, it said.

NetLink shares rose 0.5 Singapore cent, or 0.52 per cent, to 97 cents on Monday.