NetLink NBN Trust's profits grew 12.4% to $23.5m in Q1

This is despite revenue declines partly driven by fewer installation orders.

NetLink NBN Trust's profit after tax (PAT) rose 12.4% to $23.5m in Q1 FY2021, from $20.9m in Q1 FY2020, the company announced. Revenue dipped 3.3% to $89m from $92m over the same period.

Recurring revenue from fibre connections grew by $2.9m mainly due to the higher number of residential connections. As at 30 June, there were about 1.43 million residential connections as compared to about 1.38 million in 30 June 2019.

However, installation-related revenue fell by $4.7m due to fewer installation orders and service activations. Furthermore, diversion revenue was $0.9m lower due to fewer completed and billed projects as stoppages of construction work nationwide affected cable diversion work.

“In addition, COVID19 related issues this quarter contributed to lower availability of contractor resources and restricted access to homes and buildings which affected the completion of installation works,” the company added.

The uncertainties around the pandemic has caused a reduced availability of its contractors’ manpower resources, affecting its capacity to fulfil service requests from April. However, it does not expect the delays to have a long-term impact on its revenue, as they would be fulfilled with the increase in available manpower to undertake such work.

EBITDA climbed 3.4% to $68.8m due mainly to a growth in other income from government relief grants. The group’s net cash from operating activities of $65.1m in Q1 FY2021 was $8.6m higher than Q1 FY2020 thanks to higher profits and cash from property tax rebates.