Wednesday, February 13, 2019 – 18:30
FIBRE NetLink NBN Trust, a provider of FIBRE NetLink, earned a gain in operating and maintenance costs, installation and staff costs for the third quarter, among other costs, according to Wednesday results.
Net profit was 19.6 million USD. for the three months ended December 31, 2018, down by 9.4% compared to the same period of the previous year, although earnings increased by 6.7% yoy to $ 89 million.
Income growth was due to lower monthly rates, as well as non-residential links where the monthly fee was increasing.
These increases, coupled with the larger deviation from completed government projects, and the installation-related revenues from new one-time activation fees, helped offset the lower revenue from the drop in access points and segmental monthly fees.
Connections related to household fiber as of December 31, 2018 amounted to 1.28 million, while non-residential connections amounted to about 45,700, and the out-of-office address links were 1,462.
But operating and maintenance costs rose 88% year-on-year, not due to pipeline and shaft design costs, and staff costs increased by 45.4% on lower capitalization of staff costs, few projects to increase fiber capacity were in comparison with the previous year.
The change in the regulated pricing regime, which began on January 1, 2018, also disappeared in the net profit margin, the manager said in the financial statements.
Unit profit declined to half the Singapore Cents, from 0.56 Singapore points previously.
No distributions were declared for the quarter as trust makes payouts twice a year.
Tong Yew Heng, Chief Executive Officer, noted that NetLink NBN Trust – quoted on the motherboard in Singapore in July 2017 – continues to run its prospects for prospectuses. Quarterly net earnings rose by 17.6%, while revenues were 3.4% more than expected.
"We expect a steady increase in the number of connections, as more and more end users will migrate to fiber," Mr Tong added in a statement. "We will continue to invest in our network to ensure sustainable growth and value for all our unit-holders."
The manager also said the trust group continues to expand their network to new residential complexes and monitors the development of the planned 5G network in Singapore.
Separately, the Governing Council is immediately restructured and the nomination and remuneration committee divided into two committees. Eric Ang is chairman of the appointment committee and the Chaly Mah Remuneration Committee, and Arthur Lang is third in both committees.
The composition and structure of Risk and Regulatory and Audit Committees were unchanged.
NetLink NBN Trust closed the apartment at $ 0.805 before the announcements.