NetLink NBN Trust grows 9M FY26 revenue 1.6% but PAT falls 11.8% on higher depreciation and finance costs
Summary:
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For 9M FY26 (1 Apr–31 Dec 2025), revenue inched up 1.6% year-on-year to S$313.0 million, driven mainly by higher co-location and ancillary project revenue, partly offset by lower connections, ducts and manholes, and central office revenue.
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EBITDA slipped 0.6% to S$215.5 million with margin easing to 68.8% from 70.4% as other operating expenses rose, including higher property tax on Seletar Central Office and increased IT-related costs.
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Profit after tax declined 11.8% to S$65.4 million, weighed down by a 6.0% rise in depreciation from a larger asset base and a 13.6% increase in net finance costs tied to higher borrowings and lower interest income.
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Net debt/EBITDA rose to 2.7x (from 2.4x in March 2025), but gearing remains moderate, supported by a 100% fixed-rate debt profile and an effective average interest rate of 2.39%.
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The group refinanced S$210 million of short-term revolving credit facilities with a S$300 million 10-year 2.65% note issue, with the remaining S$90 million earmarked for capex, and continues to generate strong operating cash flows that comfortably cover interest.