NetLink NBN Trust posts 22.4% drop in Q1 profit to S$18.1 million on higher depreciation

Netlink NBN Trust, a Singapore-based telecommunications company, reported a 22.4% year-on-year drop in its first-quarter earnings for FY2027, settling at S$18.1 million. This decline was primarily due to increased depreciation resulting from a larger asset base. The company's total revenue also fell by 1.4% to S$101.3 million, largely due to a decrease in non-regulated assets (non-Rab) revenue.

This was mainly attributed to lower installation-related revenue, although it was partially offset by higher ancillary project revenue. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 4% to S$69.1 million, primarily because of higher operating costs. These costs were influenced by lower capitalisation of labour costs and increased IT-related expenses.

Despite the decline in revenue, the number of total connections, comprising both residential and non-residential types, increased slightly. The residential connections remained stable at around 1.5 million, similar to the previous year, while non-residential connections dropped to 51,459 from 52,905. The group noted that gross additions for residential connections remained steady, while non-residential connections declined due to end-user churn between licensees.

Residential connections accounted for 60.7% of the trust's revenue, while non-residential connections contributed 8.3%. The trust's total debt stood at S$991 million, unchanged from the previous quarter, with a weighted average debt maturity of 4.7 years.