Netlink NBN Trust has announced its financial results for the first quarter of the fiscal year ending March 2026, revealing a revenue of $75.3 million (S$102.8 million) and a net profit of $17.1 million (S$23.3 million). This accounts for 24% and 22% of the company’s full-year forecasts, respectively. The increase in non-Regulated Asset Base (non-RAB) revenue, which rose by 29% quarter-on-quarter, was primarily driven by installation-related services and ongoing projects like the North-South Corridor.
The company’s non-RAB business, which includes service-based segments, saw a revenue increase of 10.3% year-on-year, contributing to a dip in the EBITDA margin by 2.7 percentage points. This was attributed to higher operating expenses associated with these services. Additionally, increased depreciation and net finance costs led to an 8% year-on-year decrease in profit after tax for the quarter.
Residential and non-residential connection revenues remained stable, although both segments experienced a 0.7% decline in connection counts. This was due to Requesting Licensees deactivating inactive lines as part of database maintenance. Despite these challenges, Non-Building Address Points and segment connection counts rose by 15% and 1.8%, respectively, driven by demand from smart city infrastructure and enterprise deployments.
Netlink NBN Trust maintained its target price at $0.73 (S$1.00), supported by a projected dividend yield of 6.1% for FY26. The trust’s management also reported a lower gearing of 20% and increased its hedging ratio to 78.9% in the first quarter, expecting interest savings in future quarters. The company continues to focus on initiatives under Smart Nations 2.0, whilst potential risks include regulatory pricing changes and construction disruptions.
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