Netlink NBN Trust has reported distribution per unit (DPU) at 2.62 cents for 1HFY2023 ended September, up 2.3% y-o-y from 2.56 cents in 1HFY2022.
The group also reported earnings of $54.6 million for 1HFY2023, up 36.1% from $40 million in 1HFY2022.
Earnings per unit were at 1.40 cents for 1HFY2023, up from 1.03 cents in the previous year.
Netlink’s revenue for 1HFY2023 increased by 6.2% y-o-y to $199.6 million, mainly due to higher ancillary project revenue, connections revenue, co-location and installation-related revenue.
Ancillary project revenue of $7.2 million contributed most significantly to the increase due to more diversion projects being completed in 1HFY2023 as compared to 1HFY2022.
Residential connections remained the key contributor to the group’s overall revenue, contributing to 61.0% of total revenue. Residential connections revenue increased by $1.7 million to $121.7 million as a result of a higher number of connections for 1HFY2023.
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Non-building address points (NBAP) and segment connections revenue increased by $1.7 million mainly from higher demand for point-to-point connections to support mobile network rollout and other projects requiring high resiliency.
Co-location and other revenue increased by $1.0 million mainly due to increased rates for power charges charged to requesting licensees, in line with the increase in power costs. Higher installation-related revenue of $600,000 was mainly due to higher NBAP and segment installation orders coupled with higher residential service activations.
Central office revenue decreased by $1.2 million mainly due to spaces surrendered by the main lessee in NetLink’s seven central offices and reduction in rental rates effective from September 2021.
Cash and cash equivalents stood at $189.6 million for 1HFY2023, up from $172.2 million from 1HFY2022.
Although the group is cognisant of how Singapore is progressing towards being a Covid-19 resilient nation, with the lifting of restrictions opening up the economy much faster, the group notes that the global environment is still uncertain due to various geopolitical issues such as the ongoing Russia-Ukraine conflict, inflationary pressures, increases in interest rates and global supply chain constraints.
Units in Netlink closed at 0.5 cents down or 0.58% lower at 87 cents on Nov 2.
