8 Highlights from NetLink NBN Trust’s Full-Year Earnings

Cables within data center box

NetLink NBN Trust (SGX: CJLU), or Netlink for short, is the foundation of Singapore’s Next Generation Nationwide (NBN) Broadband Network. The group designs, builds, owns and operates the passive fibre network infrastructure (comprising ducts, manholes, fibre cables and central offices) of Singapore’s next generation NBN.

The Trust reported its full-year 2019 (FY 2019) earnings yesterday. Here are eight highlights from Netlink’s earnings and plans for FY 2020.

1. Revenue for FY 2019 exceeded forecasts by 3.3%, clocking in at S$353.6 million versus a projection of S$342.2 million. This was mainly driven by higher residential connections revenue, diversion revenue, and ducts and manholes service revenue, but was partially offset by lower-than-projected installation-related revenue.

2. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the Trust for FY 2019 was S$247.9 million, 3.2% higher than projected. Expenses had increased by 0.2% higher than projected, attributed to higher operation and maintenance costs and diversion expenses.

3. Profit after tax ended at S$77.4 million, which was 17.8% higher than projected.

4. The Trust achieved 1,327,732 residential connections in FY 2019, which was 3.9% higher than projected and was also 11.3% higher on a year-on-year basis compared to the 1,192,493 connections in FY 2018. For

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