- NetLink NBN Trust (SGX:CJLU)'s 1H24 results were within expectations. Revenue and EBITDA were 49%/50% of our FY24e forecast, respectively. DPU increased 1.1% y-o-y to 2.65 cents.
- 1H24 EBITDA grew 2.4% y-o-y to S$149mil, in line with the revenue growth of 2.9%. Residential connections during the quarter were 4,023, below our trendline growth of 5,500 per quarter.
- - Read this at SGinvestors.io -
The Positive
Higher distribution.
- Interim distribution rose 1.1% y-o-y 2.65 cents. This is modestly higher than our expectations of unchanged distribution for the year. See NetLink Trust's distribution dates.
- NetLink is paying out S$103mil in distributions from free-cash flow of around S$80mil. The balance is topped up from cash held in reserves.
The Negatives
Another weak quarter of residential connections.
- - Read this at SGinvestors.io -
Finance cost rose 30% y-o-y.
- Read more at SGinvestors.io.
