Netlink NBN Trust DPU inches up 1.2% to 2.56 cents

Meanwhile, its EBITDA and PAT saw a decrease at 9.4% and 10.5%, respectively.

NetLink NBN Trust's distributable income per unit (DPU) increased by 1.2% to 2.56 cents in the first half of the financial year 2022 (H1 FY22).

Earnings before interest, taxes, depreciation, and amortization and profit after tax, meanwhile, were lower by 9.4% and 10.5%, respectively. This was mainly due to a remeasurement loss of $12.4m due to financing lease receivables from the reduction in rental rates upon the renewal of the Central Office lease agreements. Lower government grants were also recorded in this period. 

Despite this reduction in rental rates, this is not expected to have a material cash flow impact for the financial year 2022 or subsequent years.

The group’s growth in H1 FY22 was mainly due to higher residential, NBAP, and segment connections revenue, installation-related revenue and diversion revenue. However, this was offset by lower Central Office revenue and ducts and manholes service revenue. 

Residential contributed the most, with recurring revenue from residential connections increasing by $1.5m. As of 30 September, 1,450,730 connections were in place, compared to 1,437,360 connections in the previous year. 

NBAP and segment connections revenue also had an increase by $2m as a result of higher demand for point-to-point connections and Central office-diversity connections.  

On the other hand, Central Office revenue decreased by $0.6m to $8.9m due to spaces surrendered by the main lessee in the group’s seven Central Offices. Ducts and manholes service revenue was also down by $0.5m to $14.1m due to a reduction in service revenue.