NetLink NBN Trust 9M FY26 Financial Results: Stable Revenue Amid Marginal Decline in Profit

Key Highlights

• Revenue for 9M FY26 rose by 1.6% to \$313.0 million, compared to \$308.2 million in 9M FY25.
• EBITDA experienced a slight decline of 0.6%, decreasing from \$216.8 million to \$215.5 million.
• Profit After Tax (PAT) dropped by 11.8%, falling from \$74.1 million to \$65.4 million for the nine months ended 31 December 2025.
• Revenue growth was driven mainly by higher non-Regulated Asset Base (non-RAB) revenue, especially from ancillary projects. RAB revenue remained stable.
• Operating costs increased, primarily due to higher property tax at Seletar Central Office and increased IT-related expenses.
• The number of residential and non-residential connections dipped slightly, while NBAP and segment connections both showed growth.

Detailed Financial Performance

NetLink NBN Trust reported a modest increase in total revenue for the nine months ended 31 December 2025, up \$4.9 million year-on-year. The marginal revenue growth was largely attributed to higher non-RAB revenue streams, specifically from ancillary project activities, while RAB revenue stayed flat.

Despite stable revenue, EBITDA declined by \$1.4 million compared to a year ago. This reduction was primarily due to higher operating expenses, especially from increased property tax obligations related to the Seletar Central Office and a rise in IT-related costs.

The Profit After Tax (PAT) saw a more significant drop of \$8.8 million (or 11.8%) year-on-year. This was mainly a result of higher depreciation charges from an expanded asset base and increased net finance costs. However, these negative impacts were partially offset by a higher income tax credit.

Operational Metrics

• Residential connections saw a slight decrease from 1,517,326 to 1,517,049.
• Non-residential connections also declined, from 53,454 to 52,574.
• NBAP (Non-Building Address Points) connections increased from 3,065 to 3,556.
• Segment connections grew from 3,832 to 4,244, reflecting continued expansion in these segments.

Implications for Shareholders

Shareholders should note the following material developments that could impact NetLink NBN Trust’s share price:

• The decline in PAT by almost 12% year-on-year could be a concern for investors, as it mainly reflects higher depreciation and finance costs. These factors could signal increased capital expenditure and debt servicing going forward.
• Stable revenue and EBITDA with only marginal declines indicate resilience in the core business, despite some operational cost headwinds.
• The reduction in both residential and non-residential connections, albeit slight, is a metric to watch as it could suggest market saturation or increased competition in Singapore’s broadband market.
• However, growth in NBAP and segment connections may be positive, reflecting new business opportunities and diversification of revenue streams.
• Higher property taxes and IT-related costs could potentially persist, affecting future profitability if not managed effectively.

Company Overview

NetLink NBN Trust owns and operates Singapore’s nationwide passive fibre network infrastructure, forming the foundation of the country’s Nationwide Broadband Network (NBN). The Trust provides extensive fibre coverage to residential and business premises across Singapore, and has been listed on the SGX Main Board since July 2017. It is a constituent of several key indices, including the FTSE ST Large & Mid Cap Index and the iEdge Singapore Next 50 Index.

Conclusion

In summary, while NetLink NBN Trust’s revenue remains robust and operational performance is largely stable, investors should monitor the declining profit margins and the rise in operating costs. The slight contraction in customer connections and the significant increase in depreciation and finance costs are key areas of concern that could exert pressure on future earnings and potentially affect the share price.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors are advised to conduct their own research or consult with a qualified financial advisor before making investment decisions.

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