NetLink’s H1 DPU up 1.1% to S$0.0265
FIBRE optic cable owner NetLink NBN Trust posted a distribution per unit of S$0.0265 for the half year ended Sep 30, 2023, a slight 1.1 per cent higher from S$0.0262 a year ago.
This came even as profit fell 3.1 per cent to S$52.9 million in H1, from S$54.6 million the previous year.
The decline in profit was primarily due to higher finance costs, depreciation and amortisation, and income tax expenses, NetLink’s trustee-manager said in a bourse filing on Friday (Nov 3).
Net finance costs, for instance, surged by 30.2 per cent to S$9.2 million in H1. Income tax expenses was S$563,000, reversing from a credit of S$841,000 a year prior.
Meanwhile, revenue inched up 2.9 per cent year on year – or S$5.7 million – to S$205.3 million.
Of the revenue increase, S$4.1 million came from regulated base (RAB) revenue, on the back of higher residential, non-residential, non-building address points (NBAP) and segment connections orders.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The remaining S$1.6 million came from non-RAB revenue, mainly contributed by installation-related and central office segments.
Overall, the trustee-manager highlighted that NetLink’s balance sheet and liquidity remain strong, underpinned by “stable cash flows and access to financial resources to support future capital expenditure”.
“Notwithstanding the increased funding and operation costs, the group expects to maintain its distribution to unitholders,” it added.
The manager noted that NetLink is well-positioned to benefit from the government’s plans to develop “future-ready broadband, mobile and Wi-Fi infrastructure”.
“We will provide our expertise and infrastructure to support (this)… and continue to explore opportunities to invest in telecommunication infrastructure businesses overseas to broaden our portfolio.”
NetLink shares closed at S$0.84 on Friday, up 0.6 per cent or S$0.005, prior to the announcement.
Copyright SPH Media. All rights reserved.
