Shares & Derivatives
Netlink Trust Disappointing Results From IMDA Pricing Review.
By Investment Income for Life  •  November 28, 2023
Netlink Trust ("NLT") announced on 27 November 2023 that the Infocomm Media Development Authority (“IMDA”) has completed their pricing review. I was shocked that the chargeable tariff has not increased at all despite inflationary pressures on labour costs, CAPEX and escalating financing charges. What was even more surprising was that the chargeable tariffs for Residential Connection and Non-Building Address Point got adjusted downwards (please click here for the YouTube Video version). Basically, over the past 5 years, residential connections have grown from 1.2Mil to 1.5Mil which gives an compound annual growth rate ("CAGR") of 4.5% in terms of volume. Non-Building Address Points ("NBAP") has grown at an impressive 26.5%. Hence due to surge in volume economies of scale over total cost of operating the fibre network, this leads to a regulatory reduction in prices per connection. Distribution yield of 6.43% not sustainable over longer term...
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.
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