Singapore-based fibre-optical network infrastructure owner NetLink NBN Trust reported lower after-tax profits for the nine months ended December 31, 2021, even as revenue rose slightly.
Revenue rose S$5.3 million ($3.9 million) or 1.9% year-on-year to S$281.6 million, mainly due to higher residential revenue and installation-related revenue.
Those gains were partially offset by lower central office revenue, NetLink NBN Management, the company’s trustee-manager, said.
Earnings before interest, taxes, depreciation and amortisation (ebitda) fell 6.2% year-on-year to S$196.9 million. Profit after tax for the nine months also fell 5.2% to S$65.8 million.
The decrease in ebitda was mostly due to a remeasurement loss of S$12.4 million relating to finance lease receivables arising from the reduction in office lease agreements.
The reduction in rental rates is not expected to have a material cashflow impact for this or subsequent fiscal years, the trustee-manager said.
NetLink said it would continue to expand its network to reach new residential dwellings and commercial buildings “in support of Singapore’s digital inclusion effort” encompassing first-time users and low-income households.
The company said it would also be exploring opportunities to invest in telecommunication infrastructure businesses overseas.
- George Russell
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