NetLink NBN Trust lifts half-year payout as lower costs support earnings

NetLink NBN Trust’s unitholders will receive S$0.0274 per unit for the half-year ended Sep 30, an increase of 1.1 per cent from the year-earlier period. The Singapore-listed fibre network operator announced the payout on Oct 29, with payment scheduled for Nov 24.

Half-year revenue slipped to S$202.6 million from S$207.1 million, a decline of 2.2 per cent. The trustee-manager said in an exchange filing that EBITDA nevertheless edged higher as cost reductions outweighed weaker revenue and other income, together with increased staff costs.

Expenses fell across operations, maintenance, installations and ancillary projects. Other savings reflected fewer asset write-offs, the return of leased space and reversals of maintenance expenses over-accrued in previous periods. The rise in staff costs mainly reflected lower labour capitalisation.

Installation-related and other revenue declined by S$2.9 million. Fewer completed projects reduced ancillary project revenue by S$1.5 million, while central office revenue also fell. Increased co-location revenue partly cushioned the decline.

The trustee-manager expects the business to remain resilient, citing its essential services and regulated model. It cautioned that cost pressures may squeeze the EBITDA margin. Higher operating expenses and depreciation linked to the Seletar central office, plus ongoing investment in systems and fibre infrastructure, are expected to affect profit after tax. It forecasts a stable per-unit distribution for the financial year ending Mar 31, 2027, compared with the preceding year.