Analysts have turned slightly more restrained on Netlink NBN Trust following its recent earnings report, as they await results of a regulatory review that will decide its new pricing.
For its 1QFY2023 ended June, NLT reported earnings of $27.6 million, up 11.3% y-o-y. Revenue in the same period was up 4.8% y-o-y to $97.9 million, with growth coming from higher ancillary project revenue and connections revenue. The earnings, unsurprisingly, were in line with expectations, given the steady nature of its business model.
Kelvin Tan of Maybank Securities prefers to be more “prudently below consensus”, pending results of a review by industry regulator IMDA, which will determine the new pricing NLT can charge since 2017 when it was listed.