NetLink NBN Trust reports fiscal 3Q net profit of S$19.6 million, above IPO forecasts

Singapore two-dollar bills

NetLink NBN Trust reported on Wednesday that its fiscal third quarter net profit came in at S$19.6 million, above the projection of S$16.7 million from its IPO prospectus.

Revenue for the quarter ended 31 December was S$89.0 million, above the IPO projection for S$86.1 million, it said in a filing to SGX after the market close on Wednesday.

That was due to higher than expected revenue from residential connection, non-residential connections and NBAP & Segment connections as well as higher diversion revenue from completed projects, mainly for government agencies, it said. It also saw higher ducts and manholes service revenue, it said. NBAP stands for non-building address points.

“Our highly resilient business model continued to deliver results that have exceeded projections,” Tong Yew Heng, CEO of the trust’s manager, NetLink NBN Management, said in the statement.

“We expect a steady growth in the number of connections as more end-users migrate to fiber. We will continue to invest in our network to deliver sustainable growth and value to all our unitholders,” he added.

As of end-December, NetLink NBN had 1.28 million residential connections and 45,734 non-residential end-user connections, up from 1.24 million and 45,514, respectively, at end-September, the filing said.

In its outlook, the trust said it was expanding its network in new housing estates and working to anticipate demand in the non-residential segment.

“With its extensive nationwide fiber network, the Trust Group is well-positioned to support, among others, the Smart Nation initiatives, the
developments in Punggol Digital District and Jurong Innovation District, and the fourth mobile telecommunication operator in its mobile network deployment,” the trust said.

“In addition, the Trust Group is monitoring the development of the 5G network in Singapore and will explore opportunities associated with the new technology,” it added.

The Trust Group designs, builds, owns and operates the passive fiber network infrastructure, including ducts, manholes, fiber cables and central offices, for Singapore’s next generation nationwide broadband network (NBN).

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