NetLink NBN Trust posted profit after tax of S$43.5 million for the half year ended Sept 30 2025, down 10.2 % year-on-year, as higher depreciation expenses offset modest topline growth.
Revenue rose 1.1 % YoY to S$207.1 million, while earnings before interest, taxes, depreciation and amortisation held steady at S$143.5 million, translating to an EBITDA margin of 69.3 %, 0.8 percentage point lower than a year earlier. The trustee-manager declared a distribution per unit of 2.71 Singapore cents, up 1.1 % YoY, payable on Nov 28 2025 with a record date of Nov 17 2025.
Revenue growth was driven chiefly by a S$2.2 million increase in ancillary project revenue, reflecting completion of more government projects, and a S$1.3 million rise in co-location revenue on stronger rack-space take-up and one-off cost recovery linked to a network upgrade to 10 Gbps speeds. These gains were partially offset by lower connections revenue.
Profitability was pressured by higher operating costs and increased depreciation and amortisation tied to the new Seletar Central Office and ongoing network investments, resulting in the decline in net profit and the slight contraction in EBITDA margin.
During the period, the group strengthened its balance sheet with a new three-year S$120 million sustainability-linked revolving credit facility and refinanced existing facilities via the issuance of S$300 million in 10-year fixed-rate notes at 2.65 %. It also issued S$300 million of qualifying project debt securities to enhance tax efficiency. Capital expenditure continued to focus on expanding the regulated fibre network to meet rising demand across residential, non-residential and NBAP connections, initiatives that form part of its regulated asset base and are eligible for future regulatory recovery.
Looking ahead, the trustee-manager said the operating environment remains volatile amid geopolitical tensions, though easing domestic inflation and interest rates provide some relief. Management indicated continued emphasis on cost discipline, network resilience and exploring additional investments in telecommunications and infrastructure-related assets, while maintaining the policy of distributing 100 % of cash available for distribution on a semi-annual basis.
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