NetLink NBN Trust profit after tax down 5.2% YoY to $65.8m for 9MFY22

This is despite the 1.9% increase in its revenue.

A 5.2% year-on-year (YoY) dip in NetlinkNBN Trust’s profit after tax to $65.8m was reported as part of the group’s latest financial update. 

Meanwhile, revenue for the same period jumped to $281.6m, or 1.9% higher than the previous year. This was mainly due to higher residential, NBAP and segment connections revenue, and installation-related revenue. All of these factors, however, were offset by lower Central Office revenue. 

1,457,973 residential connections, and 3,962 NBAP and Segment connections were recorded as of 31 December 2021, higher than the 1,443,032 residential connections and 2,798 NBAP and Segment connections from the previous year. 

Despite this higher revenue, however, both earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax for the same period were lower by 6.2% and 5.2%, respectively. The decrease in EBITDA, in particular, was mainly due to a remeasurement loss of $12.4m related to finance lease receivables from the reduction in rental rate upon renewal of the Central Office lease agreements done last September 2021. 

The reduction in rental rates, however, is not expected to have an impact on material cashflow impact for FY22 or during the subsequent years.