SINGAPORE (Feb 4): People and businesses cannot live without an internet connection and data allowance, which is good news for NetLink NBN Trust and its investors. The fibre optic network provider has seen its earnings increase steadily since it was listed in July 2017. For its 2QFY2019 ended Sept 30, revenue increased 6.7% y-o-y to $90.6 million, while earnings jumped 43.9% y-o-y to $18.7 million. Growth was driven by higher diversion, and ducts and manholes service revenue.

“Our better-than-forecast earnings reflect the resilience of our business model,” Tong Yew Heng, CEO of NetLink NBN Trust Management, said in a statement accompanying the results.

NetLink operates in a highly regulated industry, with the government mandating service recovery and connectivity requirements. Yet, this also means higher barriers to entry, and its revenue model is almost guaranteed. NetLink commands more than 90% share of the residential market, and 35% of the non-residential market. ­Users of the fibre optic network have to pay a monthly set fee.

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