NetLink NBN Trust posts 1.1% increase in H1 DPU to S$0.0274
[SINGAPORE] Mainboard-listed NetLink NBN Trust reported on Thursday (Oct 29) distribution per unit of S$0.0274 for its first half ended Sep 30, some 1.1 per cent higher than the corresponding period the year before.
The increased distribution attributable to its unitholders came despite a 2.2 per cent drop in revenue, which came in at S$202.6 million for the half-year, compared with S$207.1 million in the year-ago period.
The distribution will be paid to unitholders on Nov 24.
The trustee-manager of the fibre network operator, in an evening bourse filing, noted that its marginally higher earnings before interest, taxes, depreciation and amortisation comes on the back of lower costs.
This includes operation and maintenance costs as well as installation and ancillary project direct costs. Other operating expenses decreased due to lower property, plant and equipment write-offs; reduced lease costs following the return of leased space; and the reversal of over-accrual of maintenance costs in prior periods.
The lower costs were said to more than offset lower revenue, lower other income and higher staff costs, which arose chiefly from lower labour capitalisation.
NetLink NBN Trust attributed its revenue decrease to several factors, including a S$2.9 million drop in installation-related and other revenue; a S$1.5 million decrease in ancillary project revenue due to fewer project completions; and lower central office revenue, despite a partial offset by higher co-location revenue.
Outlook
Looking ahead, the trustee-manager expects the group’s business outlook to remain resilient, buoyed by what it describes as the essential nature of its services and its regulated business model.
It noted that ongoing cost pressures may weigh on its Ebitda margin while its profit after tax is expected to be affected by higher operating costs and depreciation arising from its Seletar central office as well as continued investments in systems and fibre infrastructure.
The trustee-manager also expects distribution per unit for the financial year ending Mar 31, 2027, to remain stable relative to the corresponding one the year before.
The counter ended Thursday flat at S$0.93 before the announcement.
