NetLink’s 9-month profit after tax rises 24.2%

FIBRE network infrastructure provider NetLink NBN Trust on Monday (Feb 13) said profit after tax for the nine months to Dec 31 rose 24.2 per cent from a year ago, to S$81.8 million.

Revenue was up 6.5 per cent to S$299.8 million due to higher ancillary project revenue, non-building address points (NBAP) and segment connections revenue, and residential connections revenue. Central office revenue was, however, lower than a year ago.

Residential connections contributed 61 per cent of total revenue. As at Dec 31, 2022, there were 1,480,682 residential connections, higher than the 1,457,973 connections the year before.

There were 5,233 NBAP and segment connections, also higher compared with the 3,962 connections as of end-2021.

Earnings before interest, tax, depreciation and amortisation rose 11.7 per cent, partly because of lower operating expenses. The trust recorded a S$12.4 million remeasurement loss in the first nine months of FY22, due to the change in rental rates upon the renewal of the central office lease agreements.

Weighted average debt maturity was 3.7 years, compared with 3.6 years a year ago.

SEE ALSO

Brokers’ take: DBS upgrades NetLink to ‘buy’ on attractive yield, lower risk-free rate

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

In an investor update, NetLink’s trustee-manager said it will focus on improving network reach, densification and capability to support NetLink’s “fibre-to-anywhere” deployment.

It will also explore opportunities to invest in telecoms infrastructure businesses overseas, which are likely to generate a stable cashflow.

NetLink shares closed at S$0.855 on Monday, unchanged.