This was due to higher depreciation from a larger asset base and higher net finance costs

 

[SINGAPORE] Fibre infrastructure provider   Netlink NBN Trust   : CJLU +0.51% posted a 11.8 per cent drop in net profit to S$65.4 million for the nine months ended Dec 31, from S$74.1 million in the previous corresponding period.

 

This was due to higher depreciation from a larger asset base and higher net finance costs, and was partially offset by a higher income tax credit, said the trust in a bourse filing on Thursday (Jan 29).

 

Depreciation and amortisation rose 6 per cent to S$138.9 million, compared with S$131.1 million the previous year.

 

Revenue rose 1.6 per cent year on year to S$313 million, from S$308.2 million. This was due to higher co-location revenue and higher ancillary project revenue, but was partially offset by lower connections, lower ducts and manholes service revenue and lower central office revenue.

 

Total connection numbers &ndash comprising residential and non-residential connections &ndash dipped slightly. 

 

Residential connections hovered at around 1.5 million, similar to last year, while non-residential connections fell to 52,574 from 53,454.

Revenue is up 1.1% year on year at S$207.1 million

 

[SINGAPORE] Fibre network provider   NetLink NBN Trust   : CJLU +0.51% on Monday (Nov 3) posted a 10.2 per cent drop in net profit to S$43.5 million for the half-year ended Sep 30, from S$48.5 million in the previous corresponding period. 

 

Its trustee-manager said this was mainly due to higher depreciation and amortisation, primarily from its Seletar Central Office, which opened in October this year.

 

However, the manager added in a bourse filing that this was partially offset by a higher income tax credit.

 

Earnings per share stood at S$0.0112 for the first half of FY2026, down from S$0.0124 the previous year.

 

Revenue rose 1.1 per cent to S$207.1 million, from S$204.8 million a year earlier.

 

The manager said the increase was mainly driven by higher ancillary project revenue from the completion of more government projects during the period.

 

Stronger co-location revenue supported by higher rack space take-up and a one-off cost recovery related to the upgrade of the Nationwide Broadband Network, which now supports speeds of up to 10 Gbps, also boosted income.

 

The manager also announced a distribution per unit of S$0.0271 for the half-year, 1.1 per cent higher than the previous corresponding period&rsquo s S$0.0268.

 

The manager said that despite a volatile global environment marked by geopolitical tensions and economic uncertainty, the group&rsquo s resilient business model &ndash supported by regulated price certainty under the revised Interconnection Offer framework &ndash continues to deliver stable revenue and operating cash flow.

 

It added that the fibre network provider has taken proactive steps to strengthen its balance sheet. 

 

These include establishing a new three-year S$120 million sustainability-linked revolving credit facility (SLRCF) in July 2025, and refinancing its existing SLRCFs through the issuance of S$300 million in 10-year fixed-rate notes at 2.65 per cent in September 2025.

 

Also, NetLink Trust issued S$300 million of Qualifying Project Debt Securities to NetLink NBN Trust, a move expected to enhance the group&rsquo s tax efficiency over time.

 

While the group continues to improve efficiency and manage costs, operating pressures and higher depreciation from ongoing fibre network investments have affected profit margins. 

 

However, the statement said that these investments are part of its regulated asset base and qualify for recovery.

 

Nevertheless, the group remains focused on expanding its network to meet rising demand across residential, commercial, and other segments, while exploring new opportunities in telecoms and infrastructure-related businesses, it added.

The facility will benefit upcoming developments including the North-South Corridor and 40,000 new homes

[SINGAPORE] Internet service provider   NetLink NBN Trust   : CJLU +0.52% opened a S$110 million new central office in Seletar on Tuesday (Oct 7), its trustee-manager said in a statement on the same day. 

 

The central office will support NetLink&rsquo s fibre network infrastructure in Singapore&rsquo s northern and north-western regions, which are expected to undergo significant development, noted the trustee-manager. 

 

This marks the 11th central office of the government-backed nationwide broadband network (NBN), which NetLink provides the infrastructure for, it added. 

 

The NBN is the network through which ultra-high-speed Internet access is delivered throughout the country. NetLink has designed, built and operated Singapore&rsquo s fibre network infrastructure since 2008.

 

The new central office is expected to serve about 40,000 new homes across the Woodlands North, Woodlands Regional Centre, Kranji, Chencharu and Sembawang North areas, as well as next-generation industrial districts such as the Sungei Kadut Eco-District. 

 

It will also provide coverage to transport and infrastructure projects including the North-South Corridor and the Johor Bahru-Singapore Rapid Transit System Link.

 

NetLink&rsquo s trustee-manager said that the central office will support the NBN&rsquo s overall resiliency by strengthening network redundancy and expanding coverage. 

 

&ldquo The Seletar Central Office adds important capacity to the NBN, ensuring that the northern region&rsquo s new housing, transport and industrial developments are well-supported with reliable, future-ready fibre connectivity,&rdquo said Tong Yew Heng, chief executive of the trust. 

 

The trustee-manager added that it would continue to work alongside government, community and industry stakeholders to support the country&rsquo s Smart Nation initiatives and digital infrastructure needs.

 

&ldquo By providing robust and scalable fibre network infrastructure, the Seletar Central Office will help enable these communities and enterprises to connect, innovate, and thrive in a digital economy,&rdquo the statement noted.

 

In 2024, the Infocomm Media Development Authority had announced a S$100 million upgrade to the NBN, for it to run at higher speeds of up to 10 gigabits per second. 

But its revenue was up 1.9% year on year at S$102.8 million Ebitda took a dip of 1.9% to S$70 million

[SINGAPORE] The manager of NetLink NBN Trust on Thursday (Jul 31) reported a 9.2 per cent fall in its Q1 FY2026 earnings to S$23.3 million, from S$25.7 million in Q1 FY2025. 

 

Revenue for the period rose 1.9 per cent to S$102.8 million from S$100.9 million the year before. This was driven by higher ancillary project and installation-related revenue.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 1.9 per cent to S$72 million in Q1 FY2026, from S$73.4 million in Q1 FY2025. This came on the back of higher operating expenses and an expanded asset base, resulting in the fall in earnings. 

 

There was a slight decline in total connection numbers &ndash comprising residential and non-residential connections &ndash in the quarter. This was mainly the result of housekeeping efforts: licensees were asked to remove inactive residential connections in the non-residential segment, the drop was the result of end-user churn among licensees.    

 

The declines were partially offset by continued growth in non-building address points and segment connections, fuelling demand by Smart Nation and enterprise infrastructure projects.

 

Analysts remain moderately optimistic about NetLink NBN Trust even though its FY2025 ebitda declined 1.5% y-o-y to $288.1 million due to lower revenue, lower non-operating income and higher operating expenses.

 

Revenue dipped 1% y-o-y to $407 million due to a drop in ancillary project revenue from fewer work orders alongside a slight dip in regulated asset base (RAB).

 

Under the RAB model, NetLink has secured a 7% regulatory return for the five-year period beginning April 2024, unchanged from the previous term. Residential connection prices have been cut by 2% to $13.50 per link, and non-building access points (NBAP) rates fell 4.5% to $70.50.

 

The impact of the lower interconnect rates will be offset by growth in connection volumes over the next four years, notes DBS Group analyst Sachin Mittal, who reiterates his &ldquo buy&rdquo call with an unchanged target price of 98 cents.

 

NetLink&rsquo s forward yield of 5.9% implies a spread of 330 basis points over the 10-year Singapore government bond yield of 2.6%, above the four-year average of 319 bps. &ldquo We expect NetLink&rsquo s distribution per unit (DPU) to rise by 1% to 2% annually over the next few years, and the yield spread to narrow towards 250 bps, to reflect the resilient nature of its distributions,&rdquo Mittal writes in a note dated May 16.

 

CGS International analysts Lim Siew Khee and Li Jiali also maintain &ldquo add&rdquo on NetLink with an unchanged target price of $1.

 

They expect residential connections, which accounted for 60.5% of FY2025 revenue, to rise in line with the uptrend housing numbers in Singapore. Contribution from the co-location segment is also expected to pick up as NetLink&rsquo s Seletar Central Office becomes operational.

 

&ldquo While ancillary project revenue in FY2025 is lower by 27% y-o-y, [Netlink&rsquo s] management remains optimistic it will see positive contribution from this in FY2026, citing the ongoing construction activities in Singapore,&rdquo state the CGSI analysts.

 

Moreover, the analysts expect lower capital expenditure (capex) for network upgrading works in FY2026, in comparison to capex in FY2024 and FY2025. &ldquo Fixed rate borrowing stood at 70.1% as of March 25 and is expected to increase to 80% after June 2025, according to NetLink. The effective average interest rate dipped by 3bp in 4QFY2025. Management expects it to remain largely stable at this level.&rdquo

 

Meanwhile, PhillipCapital analyst Paul Chew maintains his &ldquo neutral&rdquo stance on NetLink with the same target price of 87 cents.

 

While growth is expected to pick up in FY2026 on the back of higher residential and non-residential connections, Chew notes that free cash flow (FCF) will stay negative in the near term due to elevated capex for network upgrades to support 10 Gbps bandwidth and IT systems.

 

The $510 million term loan at a 1.1% interest rate is due for refinancing in mid-2026, too. &ldquo If we assume a 2% point rise in interest cost, the incremental interest expenses are around $10 million,&rdquo Chew estimates.

 

He adds that the increased capex will not translate into higher immediate revenue. &ldquo The higher capex is guaranteed a regulatory revenue, but no incremental revenue. Returns are from maintaining current connection rates. The new central office in Seletar will not generate rental revenue, unlike existing locations.&rdquo

Revenue for the half is down 1.8% year on year to S$202.2 million

 

[SINGAPORE] Internet service provider NetLink NBN Trust : CJLU 0% posted a 6.9 per cent decrease in net profit to S$46.9 million for the second half ended Mar 31, 2025.

 

NetLink&rsquo s earnings were impacted by higher depreciation and amortisation, lower income tax credit and higher finance costs, it said in a regulatory filing on Thursday (May 15).

 

Revenue for the half was down 1.8 per cent year on year to S$202.2 million, primarily due to a S$3.2 million reduction in ancillary project turnover from fewer work orders. The availability of project opportunities fluctuates from year to year, it added.

 

Distribution per unit edged up by 1.1 per cent to S$0.0268 from S$0.0265. The business trust has a policy to distribute all of its cash available on a semi-annual basis. Depreciation and amortisation expenses increased by S$3.6 million, in line with continued network assets expansion.

 

Income tax credit dipped by S$1 million due to a reversal of current and deferred tax expenses from finalisation of tax assessments for prior periods. Finance costs were S$500,000 higher, despite a slightly lower average interest rate, largely due to a S$46 million loan drawdown during the period

 

Net profit for FY2025 stood at S$95.4 million, 7.6 per cent lower compared to FY2024, driven by increased depreciation and amortisation, and higher finance costs. Revenue was S$407 million, 1 per cent lower, primarily due to S$6.2 million lower ancillary project revenue from fewer work orders.

 

CGS International analysts Lim Siew Khee and Li Jialin are maintaining &ldquo add&rdquo on NetLink NBN Trust with a higher target price of $1 from 95 cents previously, calling it &ldquo a 6% defensive dividend play to own&rdquo .

 

NetLink is a &ldquo non-index, liquid play with a steady earnings profile&rdquo , say the CGSI analysts, with   &ldquo strong&rdquo distribution per unit (DPU) visibility for FY2025 to FY2027, backed by &ldquo steady growth in operating cashflow&rdquo . 

 

In addition, Lim and Li believe investor interest in NetLink could increase as it was re-included on the Straits Times Index (STI) reserve list in March. 

 

&ldquo With the launch of the $5 billion MAS Equity Market Development Fund, we believe non-index, liquid stocks with stable DPU profiles could be appealing to investors. NetLink&rsquo s 6% dividend yield in FY2025 is on par with S-REITs&rsquo average yield of 6.2%,&rdquo they add.

 

Residential connections made up 60% of NetLink&rsquo s revenue for 9MFY2025 ended Dec 31, 2024. As the sole provider of residential fibre networks in Singapore, NetLink had some 1.52 million residential connections as of 3QFY2025, 0.7% higher compared to end-FY2024. 

 

In the past three years, NetLink has seen residential connections growing at 1.5% p.a. According to the Housing Development Board (HDB), public housing stock could increase by 1.8% (or approximately 20,000 units) each year from 2021 to 2027. 

 

&ldquo We believe NetLink&rsquo s residential connections will follow the uptrend in housing numbers and it will continue to see stable revenue growth,&rdquo say the CGSI analysts. 

 

NetLink also engages in the diversion, installation and leasing of co-location and central offices to telcos, which are often required in construction, infrastructure and township projects. 

 

According to the Building and Construction Authority (BCA), total construction demand from 2026 to 2029 could reach an average of $39 billion to $46 billion p.a., supported by developments like MRT projects and public housing.  

 

&ldquo We believe this bodes well for NetLink as it grows its non-regulated asset base (non-RAB) revenue through incremental projects and network coverage expansion,&rdquo say the CGSI analysts. 

 

According to Lim and Li, NetLink&rsquo s gearing is likely to hover around 30.6%, with 72% of the debt fixed and cost of debt at 2.72% as of end-2024. NetLink&rsquo s management will refinance some of its existing hedges in FY2026.

There will be no change to the index&rsquo s constituents

 

INTERNET service provider NetLink NBN Trust : CJLU 0% will replace transport company ComfortDelGro : C52 +2.11% on the Straits Times Index&rsquo s (STI) reserve list, following the index&rsquo s March 2025 quarterly review.

 

There will be no change to the STI, said the index&rsquo s administrator, FTSE Russell, on Thursday (Mar 6).

 

The STI reserve list is made up of the five highest ranking non-constituents of the STI by market capitalisation. Stocks on the reserve list will replace any STI constituents that become ineligible as a result of corporate action before the next review, which will take place in June 2025.

 

The other four companies on the reserve list are CapitaLand Ascott Trust : HMN +0.58%, Keppel DC Real Estate Investment Trust (Reit) : AJBU -1.9%, Keppel Reit : K71U -0.61% and Suntec Reit : T82U 0%.

 

The changes take effect at the start of business on Mar 24.

 

FTSE Russell partners the Singapore Exchange and SPH Media Trust to jointly calculate the STI.

 

The STI is used as the basis for a range of financial products including exchange-traded funds, warrants, futures and other derivatives.

 

It is reviewed quarterly in accordance with the index ground rules, and to facilitate the inclusion of eligible initial public offering stocks.

NetLink NBN Trust recorded a profit after tax of $74.1 million for the 9MFY2025 ended Dec 31, 2024, a 12.9% decrease from the same period a year ago. 

 

The group&rsquo s ebitda for the period came in at $216.8 million, down 5.1% y-o-y. The decrease in ebitda was mainly due to lower revenue and non-operating income, along with higher operating costs, says the firm. 

 

It adds that in the 9MFY2024 period, operating costs were lower partly due to a one-off reversal of $6.2 million following the resolution of disputed power charges. 

 

NetLink&rsquo s revenue for the 9MFY2025 period came in 0.4% lower y-o-y at $308.2 million, mainly due to lower non-Regulated Asset Base (RAB) revenue because of a reduction in ancillary project revenue. This was partially offset by higher installation-related revenue, the company says. 

 

&ldquo RAB revenue remained stable, and the number of residential connections increased from 1,501,032 to 1,517,326 y-o-y, while non-residential connections increased from 53,222 to 53,454,&rdquo the firm&rsquo s release reads. 

 

Non-Building Address Points (NBAP) connections grew from 2,920 to 3,065 and segment connections grew from 3,397 to 3,832 when compared to the same period a year before. 

 

The group says its focus for the FY2025 is to grow NBAP and segment connections by supporting deployments related to Smart Nation and cloud-based services to continue to support digitalisation of SMEs by lowering cost of connections to support the upgrade of the Nationwide Broadband Network to offer up to 10Gbps per connection, among others. 

On Dec 6, NetLink NBN Management&rsquo s executive director and CEO Tong Yew Heng acquired 250,000 units of NetLink NBN Trust : CJLU 0% at S$0.855 per unit. This increased his direct interest in the business trust from 0.027 per cent to 0.033 per cent.

 

His preceding acquisition was on Jun 26, with 100,000 units acquired at S$0.825 per share, with the price-to-book ratio of NetLink NBN Trust trading around 1.3 at the time of both acquisitions.

 

Tong has served as the CEO of the trustee-manager since January 2016, overseeing the trust&rsquo s leadership and performance. He has more than 20 years of experience in senior management across various industries, having previously held the position of executive vice-president for corporate and market development at Singapore Technologies Electronics. Before that, he was the CEO of CitySpring Infrastructure Trust.

 

The NetLink group&rsquo s network forms the backbone of Singapore&rsquo s Nationwide Broadband Network, delivering ultra-high-speed Internet across the country.

 

On Nov 4, NetLink NBN Trust&rsquo s H1 FY2025 results were announced. Its distribution per unit of 2.68 Singapore cents increased 1.1 per cent increase from H1 FY2024. Most of the total returns that it has delivered since listing in July 2017 has been through its semi-annual distributions.

 

As at Sep 30, residential connections increased to 1.5 million non-residential connections to 53,182 non-building address point (NBAP) connections to 3,011 , and segment connections to 3,774.

 

For the current financial year, NetLink NBN Management aims to grow the NBAP and segment connections by supporting Smart Nation and cloud-based services, while also enhancing co-location facilities for up to 10 Gbps connections and completing a new central office by 2025.

 

Additionally, the manager is looking to support digitalisation of small and medium-sized enterprises (SMEs), working towards lower connection costs and executing sustainability initiatives for ongoing emissions reduction.

Its net profit is down 8.3% at S$48.5 million, amid lower Ebitda and higher depreciation and amortisation

 

FIBRE network infrastructure provider NetLink NBN Trust : CJLU +1.1% on Monday (Nov 4) reported a distribution per unit of S$0.0268 for the half year ended Sep 30, up 1.1 per cent from the S$0.0265 declared in the corresponding period a year ago.

 

The trustee-manager said the distribution will be paid out to unitholders on Nov 29.

 

NetLink&rsquo s net profit was down 8.3 per cent at S$48.5 million for the first six months of its 2025 fiscal year, compared to the same period last year.

 

The lower net profit was mainly the result of lower Ebitda (earnings before interest, taxes, depreciation and amortisation) and higher depreciation and amortisation, partially offset by higher income tax credit, said NetLink.

 

Revenue was down by S$0.5 million or 0.2 per cent at S$204.8 million for H1 FY2025 compared to H1 FY2024, primarily due to lower revenue from ancillary projects (non-regulated asset base revenue) as more government projects were completed in the prior corresponding period.

 

This was partially offset by higher installation-related and other revenue, co-location revenue and central office revenue, NetLink added.

 

Ebita for H1 FY2025 stood at S$143.5 million, 3.8 per cent lower than in H1 FY2024.

 

The company said this was attributed to higher operating expenses during the period, and the absence of the one-off gain on the disposal of assets in H1 FY2024 (non-operating income).

 

Earnings per unit stood at S$0.0124 for H1 FY2025, down from S$0.0136 in the year-ago period.

 

NetLink noted that there were 1.52 million residential connections as at end-September, up from 1.49 million in the year-ago period.

 

There was a slight increase in non-residential connections to 53,182 in this first half, from 52,568 in H1 FY2024.

 

The trustee-manager added that it has been investing in its network assets to cater to the growing end-user demand across residential, non-residential, non-building address points and segment connections &ndash a move it believes will increase its regulated asset base.

 

NetLink said the global political and economic outlook remains uncertain. The company will continue to monitor the evolving macro environment and respond with appropriate measures.

 

It describes its business model as &ldquo resilient and well-supported by predictable revenue streams&rdquo .

 

&ldquo The group&rsquo s balance sheet and liquidity remain strong, underpinned by stable cash flows and access to financial resources to support ongoing and future capital expenditure,&rdquo it added.