NetLink NBN Trust - OCBC Investment 2024-05-20: Stable Distribution

• NetLink NBN Trust (SGX:CJLU)’s 2HFY24 revenue grew 1.0% y-o-y to S$206.0m, mainly driven by higher connections, installation-related, and other revenue. This was, however, partially offset by lower ancillary project revenue.

In-line set of results

• - Read this at SGinvestors.io -
• A final dividend of S$0.0265 per share was declared, up 1.1% y-o-y. This brings the total NetLink Trust's distribution for FY24 to S$0.0530 (+1.1% y-o-y).

Fibre connections across key segments continued to grow

• Fibre connections across NetLink’s key segments continued to grow in FY24, with residential/non-residential/non-building address points (NBAP)/segment connections growing 2%/3%/10%/25% y-o-y.
  • - Read this at SGinvestors.io -
  • Residential connections remained stable and the key contributor, with its revenue growing 1.3% y-o-y in FY24, contributing to 60% of total revenue.
• Revenue from ancillary projects fell 10.8% y-o-y to S$22.9m, as the availability of project opportunities fluctuates from y-o-y.

Attractive dividend yield of ~6%

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-05-20 SGinvestors.io

---