NetLink NBN Trust - Maybank Research 2024-08-05: Foundation Of Stability

• NetLink NBN Trust (SGX:CJLU)'s 1QFY25 earnings fell by 9% y-o-y, whereas revenue and EBITDA declined by 3% and 2% y-o-y.

Stable on the surface

• Revenue decline was mainly owing to lower low-margin and often bumpy ancillary projects revenue whereas its key regulated asset base (RAB) revenue was stable despite the lower regulatory pricing kicking in from April 2024.
• - Read this at SGinvestors.io -

Operating metrics – mild surprises but not concerning

• NetLink posted stable RAB revenue y-o-y despite reduction in its regulated pricing from April 24. Residential connections increased by a strong 17,375 vs a run rate of ~6,000 in previous quarters.
  • Management attributed this to telcos’ promotions of 10Gbps fibre offerings and WiFi7 router offerings, which might have attracted new take-ups without terminating existing lower speed contracts (to avoid termination penalties).
  • - Read this at SGinvestors.io -
• On the other hand, NBAP (non-building address point) connections surprisingly fell 1% q-o-q.
  • Management expects the rise in residential connections to reverse and expects growth momentum in NBAP connections to resume.

Earnings forecast trimmed

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-02-11 NetLink NBN Trust - Stability Resurfacing; Earnings Up 12% Q-o-q.

Previous report by Maybank:
2024-11-05 NetLink NBN Trust 1HFY25 - Underlying Firm, Although Soft On Surface.

Price targets by 2 other brokers at NetLink Trust Target Prices.

Listing of research reports at NetLink Trust Analyst Reports.

Relevant links:
NetLink Trust Share Price History,
NetLink Trust Announcements,
NetLink Trust Dividend Payout Dates & Corporate Actions,
NetLink Trust News