NetLink NBN Trust's profit up 9.6% to $21.5m in Q3

Residential connections revenue rose, accounting for 64.1% of the total figure.

NetLink NBN Trust posted its post-tax profit inched up 9.6% YoY to $21.5m in Q3 2020 from $19.6m in 2019, according to an SGX filing. Likewise, its revenue rose 2.9% YoY to $91.6m from $89m over the same period.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) also grew 7.4% YoY to $67.5m in Q3 from $62.8m.

The revenue increase was mainly due to higher residential revenue, but was countered by lower installation-related revenue, diversion revenue as well as ducts and manhole service revenue.

Residential connections revenue edged up by 12.8% to $58.7m in Q3, contributing 64.1% of NetLink Group’s total revenue. As at 31 December 2019, there are 1.42 million residential connections as compared to 1.28 million residential connections in the prior year.

Meanwhile, installation-related revenue was $1.9m lower during the quarter amidst lower residential service activation charges and installation charges from fewer orders requiring installation as the migration of coaxial cable subscribers to fibre by StarHub ended on 30 September 2019.

Diversion revenue also slipped by $1m as it saw fewer completed projects in the same quarter. Ducts and manholes service revenue decreased by $2m mainly due to the completion of fewer joint-build projects in Q3.

Netlink group also noted that despite higher revenue in Q3 FY20, total expenses were marginally higher by $0.6m as depreciation, amortisation costs and other operating expenses went up.

As for its 9M period, post-tax profit ended 14.5% YoY higher to $65.6m, whilst its revenue rose 4.5% YoY to $277.8m. This was also attributed to higher residential connections, as well as higher nonresidential connections and Central Office revenue.