- NetLink Trust (SGX:CJLU)’s 1HFY26 revenue rose 1.1% y-o-y to S$207.1m, supported by higher ancillary project (+26.8% y-o-y) and co-location (+12.4% y-o-y) revenue, but was partially offset by weaker connections revenue.
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1HFY26 DPU up 1.1% y-o-y despite lower net profit
- Net profit fell 10.2% y-o-y to S$43.5m, below expectations, and came in at 42% of our initial full-year forecasts. The decline was mainly due to higher depreciation and amortisation, primarily from the Seletar Central Office.
- Despite lower earnings, an interim dividend of 2.71 Singapore cents per share was declared, up 1.1% y-o-y.
NBAP and segment connections grew but revenue was weighed by milestone rebates
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- Residential connections remained influenced by plan upgrades and deactivations due to the Requesting Licensees (RL) clearing inactive or dormant lines. The decline in non-residential connections was mainly due to end-user churn between RLs.
- Meanwhile, demand from mobile network rollouts supported growth in NBAP and segment connections. Despite higher connections, NBAP and segment connections revenue was down 5.6% y-o-y, mainly due to higher rebates for Point-to-Point connections after reaching specific milestones.
- Management noted that the volume milestone rebates from one of the telcos are unlikely to remain a drag going forward. They do not expect other telcos to reach a similar target volume and trigger significant rebates in the near-term.
Raise fair value estimate to S$1.05.
- Read more at SGinvestors.io.
