CFA Society Singapore
SINGAPORE (May 14): The trustee-manager of NetLink NBN Trust has announced distribution per unit (DPU) of 3.24 cents for the financial period from June 19, 2017 to Mar 31, 2018 (FP18), some 5% higher than the forecast at IPO.
NetLink NBN Trust achieved revenue of $228.6 million in FP18, falling 1.8% short of the forecast, mainly due to lower installation-related revenue.
FP18 EBITDA and profit after tax were higher than forecast by 3.8% and 10.8%, respectively. This was mainly due to lower operation and maintenance costs, staff costs and other operating expenses.
As at end March, cash and cash equivalents stood at $166.4 million.
“Our better-than-forecast earnings reflects the resilience of our business model. The growth in the number of connections for residential, non-residential and segment fibre for the relevant financial period was higher than the forecast,” says Tong Yew Heng, chief executive officer of the trustee-manager.
Looking ahead, the group says it expects to deliver the distribution forecast as stated in the Prospectus for FY19.
With its extensive nationwide fibre network, it adds that it is well-positioned to support Smart Nation initiatives, the developments in the Punggol Digital District and the Jurong Innovation District, and the fourth mobile telecommunication operator in its mobile network deployment.
Units of NetLink Trust closed flat at 81.5 cents on Monday.