NetLink NBN Trust reports 3Q earnings of $21.7 mil; 32.5% higher than IPO forecast

NetLink NBN Trust reports 3Q earnings of $21.7 mil; 32.5% higher than IPO forecast

PC Lee
05/02/18, 07:01 pm

SINGAPORE (Feb 5): The trustee-manager of NetLink NBN Trust reported earnings of $21.7 million for 3Q18, 32.5% higher than IPO forecast, thanks to lower operating and staff costs.

EBITDA came in at $63.2 million, 10.8% higher than $57 million in forecast for the same reasons.

There is no distribution for 3Q18.

In 3Q18, NetLink NBN Trust posted revenue of $83.4 million, exceeding forecasts by 0.6%.

This was due mainly to higher monthly recurring residential and non-residential connection revenue, higher ducts & manholes services revenue and central office revenue.

However, this was partially offset by lower installation revenue from a decrease in demand for installation of fibre termination points (FTP) in the residential homes and the installation of FTPs for non-building address points (NBAPs).

Tong Yew Heng, CEO of the trustee-manager NetLink NBN Management, says, “Our better-than-forecast earnings is a testament to the resilience of our business model. We are on track to deliver the financial performance forecast in our IPO prospectus.”

As of Dec 31 2017, there were 1,165,028 residential connections and 43,228 non-residential connections, compared to 1,142,648 residential connections and 42,028 non-residential connections as of Sept 30 2017.

The group has also been working proactively with the requesting licensees to anticipate future demand in the non-residential and non-building address points (NBAP) segments, and to support the requesting licensees’ efforts to acquire new corporate and NBAP customers.

Looking ahead, the trustee-manager expects to deliver the financial performance and distribution forecast as stated in the prospectus.

Shares in NetLink NBN Trust closed at 83 cents on Monday.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....