The manager of Netlink NBN Trust has declared distribution per unit (DPU) of 2.53 cents for the 1HFY2021, up 0.4% from the 2.52 cents posted a year ago.
This comes on the back of 1HFY2021 earnings of $44.8 million, up 1.5% from the $44.1 million registered in 1HFY2020.
Revenue for the half-year period dipped by 2.5% y-o-y to $181.5 million, mainly due to lower installation-related revenue, diversion revenue and revenue from ducts and manholes services.
The group reported higher earnings before interest, taxes, depreciation and amortisation (EBITDA) of $139.7 million, up 3.4% y-o-y, and 1.5% higher y-o-y profit after tax (PAT) of $44.8 million.
The lower revenue was partially offset by higher residential connections revenue.
According to Netlink, the group’s fibre business revenue continues to be supported by the growing number of residential connections.
Recurring revenue from residential connections climbed 4.1% y-o-y to $118.5 million in 1HFY2021, contributing to 65.3% of the group’s total revenue.
As at Sept 30, there were 1,437,360 residential connections as compared to 1,410,627 connections the year before.
Installation-related revenue fell 44.3% y-o-y to $6.9 million mainly due to lower installation charges from few installation orders and service activations as StarHub was migrating its coaxial subscribers onto fibre.
There was a lower availability of contractor resources and restricted access to home and buildings from April to August due to Covid-19, which affected the completion of installation works during the half-year period.
Diversion revenue fell 47.4% y-o-y to $3.3 million due to fewer completed projects. The stoppage of construction work around the nation affected cable diversion work, says the group.
Ducts and manholes service revenue dropped 6% y-o-y to $14.6 million due to the lower completion of joint-build projects and a reduction in service revenue from the leasing of NetLink’s ducts.
As at Sept 30, cash and cash equivalents stood at $181.4 million.
NetLink says it has a “resilient” business model that is well-supported by predictable revenue streams from monthly recurring charges for fibre connections to residential and non-residential premises, and non-building address points (NBAP) locations; and contracted revenues.
“The Covid-19 situation has highlighted the importance of fibre broadband as an essential service to end-users’ daily lives. Fibre broadband is considered a necessity given the increasing number of end-users who are reliant on fibre broadband services for a wide range of activities,” says Tong Yew Heng, CEO of the manager.
“The NetLink Group will continue to work closely with industry partners to support Singapore’s digitalisation efforts even as we grow our residential connections by connecting new homes and supporting initiatives such as the Home Access Programme,” he adds.
Units in NetLink closed 1.5 cents higher or 1.6% up at 97.5 cents on Nov 6.
