NetLink NBN Trust reports 2HFY2024 DPU of 2.65 cents, up 1.1% y-o-y

Full year payout reached 5.3 cents, up 1.1%.

NetLink NBN Trust has reported a distribution per unit of 2.65 cents for 2HFY2024 ended March, up 1.1% y-o-y. This brings its full year payout to 5.3 cents, up by a similar 1.1%.

This means NetLink NBN has been able to deliver "small but steady" growth in returns to unitholders.

Netlink NBN is paying a higher distribution even with profit after tax down 8% y-o-y to $50.3 million in 2HFY2024, bringing full year profit tax down 5.5% to $103.2 million, due to a combination of lower ebitda, higher financing costs and depreciation.

Revenue in 2HFY2024 came in at $206 million, up 1%, while full year revenue increased by 4.9% y-o-y to $411.3 million, with higher revenue from its key business segments.

In its earnings commentary, the trust's manager says the global political and economic outlook remains uncertain and that it will continue to monitor the evolving macro environment and take the appropriate mitigating measures, as necessary.

"NetLink Group’s business model is resilient and well supported by predictable revenue streams. The group’s balance sheet and liquidity remain strong, underpinned by stable
cashflows and access to financial resources to support the ongoing and future capital expenditure," says Netlink NBN Trus.

Last November, industry regulator the Infocomm Media Development Authority has completed its review of the wholesale prices, terms, and conditions of the NetLink Interconnection Offer.

"The revised wholesale prices, regulated using the Regulated Asset Base framework, took effect from April 1.

"The revised prices are not expected to have any material impact on the Trust’s distribution to its unitholders for FY2025.

Netlink NBN Trust units closed at 87 cents on May 16, unchanged for the day, and up 1.76% year to date.

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