- NetLink Trust's 1HFY26 results were within expectations. Revenue and EBITDA were 51% and 49% respectively, of our FY26e forecast. 1HFY26 DPU increased 1.1% y-o-y to 2.71 cents. EBITDA was unchanged y-o-y at S$143.5mil.
- - Read this at SGinvestors.io -
- No change to our FY26e forecast.
- Falling interest rates will make NetLink Trust’s stable distribution yield of 5.5% more attractive. It also allows lower refinancing cost for the S$510mil due May 26. Incremental interest expense could rise S$7.5mil.
The Positive
Growth in co-location revenue.
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The Negative
Drop in residential connections.
- Whilst gross residential connections remained stable, terminations increased as telcos deactivated dormant lines. The take-up rates of fibre in new housing connections have been stable.
- There is no indication of mobile data substitution for fibre.
Outlook
- Read more at SGinvestors.io.
