SINGAPORE (Nov 2): NetLink NBN Trust, which listed on July 19, 2017, posted 1H19 DPU of 2.44 cents.

This came on the back of 1H19 earnings of $37.7 million, 21.4% higher than 1H19 projection of $31.1 million.

Revenue for the period increased by 172.9% to $176.7 million, compared to $64.8 million a year ago and 4.8% higher than the projection, mainly due to higher diversion revenue and ducts and manholes service revenue.

This was partially offset by the lower than projected installation-related revenue.

The increase in diversion revenue of $9.0 million was due to the recognition of revenue from completed projects mainly for government agencies. The higher ducts and manholes service revenue of $3.1 million was mainly due to recovery of costs from Singtel for ducts and manholes joint-build projects.

Other income saw a significant increase to $1.55 million from $0.2 million last year.

Total expenses also grew by 167.3% to $144.3 million, compared to $54.0 million in the previous year.

Tong Yew Heng, CEO of the trust’s manager says, “Assuming the distribution for the second half of the financial year is the same as the first half, the annualised DPU of 4.88 cents will represent an increase of 5.2% over the projected DPU of 4.64 cents as stated in the prospectus.”

On the outlook, the trust said in a media release issued on Friday that it remains on track to achieve the number of end-user connections in both the residential and non-residential fibre segments, in the projection as stated in the prospectus for FY19.

With its extensive nationwide fibre network, the trust is also 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.

In addition, it is also monitoring the development of 5G network in Singapore and will explore associated opportunities.

Units in NBN NetLink Trust closed at 78 cents on Friday.